Gift - Shares

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ü U/s 56 shares of a company (not being a company in which public are substantially interested) in excess of Rs. 50,000 received without consideration by a firm or a company (not being a company in which public are substantially interested) will be chargeable to income tax in the hands of the recipient under the head ‘Income from other sources’.

ü In case shares are received for a consideration, if fair market value of the shares exceeds by an amount of Rs. 50,000/- over the consideration, then such excess amount shall be chargeable to tax as said above.

ü The above provisions shall not be applicable if the shares are received by the company in a scheme of amalgamation as mentioned in clauses (via), (vic), (vid) or (vii) of section 47.

ü The above amendment shall take effect from 1^st June 2010.