{"id":45363,"date":"2021-12-23T13:11:59","date_gmt":"2021-12-23T07:41:59","guid":{"rendered":"https:\/\/www.squareyards.com\/blog\/?p=45363"},"modified":"2025-01-29T16:42:56","modified_gmt":"2025-01-29T11:12:56","slug":"stamp-duty-on-transfer-of-shares","status":"publish","type":"post","link":"https:\/\/www.squareyards.com\/blog\/stamp-duty-on-transfer-of-shares","title":{"rendered":"Stamp Duty on Share Transfer: Process and Penalty"},"content":{"rendered":"

Shares and debentures are important transferable assets of a company. A share transfer is possible via arrangements or contracts between two or more entities (company or individual). These transfers of assets and securities come under the dominion of The Company Act.<\/span><\/p>\r\n

However, for transferring shares, the entities have to pay a certain amount of tax to the government, known as stamp duty on share transfer. After paying this amount, the shares are transferred to the new entity’s name.<\/span><\/p>\r\n

In this article, let\u2019s get to know what stamp duty on share transfer is, why it is paid to the government, share transfer stamp duty rates, processes, penalties and more.<\/span><\/p>\r\n

What is Share Transfer?<\/h2>\r\n

Share transfer refers to the voluntary transfer of rights and duties (in some cases) of a company\u2019s member (who is the owner or represents that company’s share). If the shareholder does not wish to be a part of the company anymore, they transfer their shares and duties to the new member who will take their place.\u00a0<\/span><\/p>\r\n

Additionally, the shares of any company are transferable similar to that of immovable property. This transfer is only possible in case of the absence of the restrictions under the article of that company.<\/span><\/p>\r\n

People Involved in Transfer of Share<\/h2>\r\n

Here is the list of people who are part or involved in the share transfer process:<\/span><\/p>\r\n