https://www.taxtmi.com/caselaws?id=354932 Under the Gift Tax Act, a transfer of shares is not treated as a taxable gift merely because the consideration is below market value; the deeming rule in section 4 applies only to transfers otherwise than for adequate consideration in the manner contemplated by the statute. A bona fide family settlement made to resolve disputes and preserve family harmony is likewise not characterised as a deemed gift, because such arrangements are recognised as valid family adjustments rather than taxable transfers. The legal position stated is that transfers effectuating a genuine family settlement fall outside gift tax liability on these facts. en-us Tue, 16 Jan 2018 00:00:00 +0530 Wed, 07 Feb 2018 08:21:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=354932 Under the Gift Tax Act, a transfer of shares is not treated as a taxable gift merely because the consideration is below market value; the deeming rule in section 4 applies only to transfers otherwise than for adequate consideration in the manner contemplated by the statute. A bona fide family settlement made to resolve disputes and preserve family harmony is likewise not characterised as a deemed gift, because such arrangements are recognised as valid family adjustments rather than taxable transfers. The legal position stated is that transfers effectuating a genuine family settlement fall outside gift tax liability on these facts. Case-Laws Income Tax Tue, 16 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=354932