Gift tax not applicable on share transfers or transfer of property to effectuate a settlement

Commissioner Of Gift Tax Vs. Ramesh Suri (Delhi High Court)  In Ziauddin Ahmed (supra), the shares were transferred for a consideration of over `3 lacs. It was found that these were not in accord with the market value of the shares on the date of transfer. The difference between the market value of the shares and the value of the transfer was held to constitute deemed gift under Section 4 and that amount was brought to tax. The Gawahati High Court found that the transfer was pursuant to a family settlement and stated that the provisions of the Gift Tax Act would not be applicable. FULL TEXT O...