• Marriage Gift from a Private Ltd Cos

Dear Sir,
There are 4 shareholders in a pvt ltd cos.All shareholders are relatives (Uncle and Nephew)
Private Limited cos has 12 crore assets.They want to gift the Uncle (shareholder)daughter 3 crore as marriage gift. 
Marriage Gift deed would be created so that he marriage gift is exempt for the daughter.

1)How many directors sign required on the marriage gift deed ?
2)what query can come to the pvt ltd company if this gift is effected ?
Asked 1 year ago in Income Tax

Hello,

 

  1. The number of directors required to sign the marriage gift deed would depend on the provisions of the AOA of the Pvt Ltd Company.

  2. Income tax department may raise queries regarding the genuineness of the transaction.The company may need to provide documentation and evidence to support the transaction, such as the marriage gift deed, proof of the daughter's marriage, and evidence of the company's financial position.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

 

Thank you.

Shubham Goyal
CA, Delhi
269 Answers
4 Consultations

5.0 on 5.0

1. At least 2 directors need to sign the gift deed

2. if they are gifting shares, proper documentation related to Companies ACT should comply.  

Vidya Jain
CA, Kolkata
1015 Answers
58 Consultations

4.8 on 5.0

As per section 56(2)(x), any thing received on the occasion of marriage is exempt for the recipient irrespective from whom he or she is receiving it.

 

Signing of marriage gift would depend on the provision of company as gift deed only needs a valid gift deed so it depends what you are gifting to the daughter and if the deed is signed by majority board of directors I think it would be ok for both company law and income tax.

 

Please check if it would be considered as gift or as a transfer without consideration.

 

Further, please check if the company could give such gift. If she is not a shareholder it would not be covered under deemed dividend.

 

Also, please check if such asset is covered under section 50C or 50CA.

 

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Thank you.

Naman Maloo
CA, Jaipur
4288 Answers
98 Consultations

5.0 on 5.0

 

1) All directors except uncle whose daughter would receive marriage gift

2) Pvt. Ltd. co. can give marriage gift to her but it may be subject to litigation. Scale of marriage ceremony, proof of marriage ceremony in the form of videography and photos, list of all donors, source of funds to bear the marriage expenses which Assessing officer may ask for.  

Show gift amount in her ITR

 

For detailed discussion you may opt for phone consultation

Vivek Kumar Arora
CA, Delhi
4885 Answers
1069 Consultations

5.0 on 5.0

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