donation of shares to charitable trust

[Pankaj F]

My Queries

 

1) if a company donates listed shares to a charitable trust, does this amounts to transfer and hence capital gain on this needs to be calculated. if yes, what will be the sale price for sale consideration

[CAGOPALJI AGRAWAL]

It would be transfer and the price on the date of donation on the stock exchange would be taken,

AI Summary

Transfer treatment for donated listed shares: stock exchange price on donation date governs capital gains consideration. Donation of listed shares to a charitable trust is a transfer for capital gains purposes; the sale consideration is the stock exchange market price on the date of donation, which is used to compute capital gain.