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Can securities premium received be deemed to be an income


04 June 2016 Dear Sir,

If a PQR pvt Ltd or PQR Ltd is receiving Rs. 100 rupees from Mr. A towards share subscription of equity shares and out of which the said company (private or public) accepts Rs. 10 as face value and Rs. 90 as securities premium. Can PQR pvt Ltd/ PQR Ltd can consider Rs. 90 as income and pay tax on the same? Whether it is a violation of law ande let me know which provision of under Companies Act 1956 and Companies Act 2013, shall I refer ?

04 June 2016 yes ... refer section 56

04 June 2016 refer section 56 (2) viib of income tax act




04 June 2016 Sir,
My question is regarding funds transfered to securities premium and whether such funds in securities premium account can be treated as company's income irrespective it is an investment made by equity share holder for subscribing shares by paying Rs. 10 towards face value and Rs. 90 towards securities premium account? Please let me know in which provision under Companies Act 1956 and Companies Act 2013 such securities premium can be considered as income?Section 56(2)viib under Income tax act interpretates about any excess money than fave value of shares are considered as income, but is silent about securities premium which is a part of reserve?

04 June 2016 Sir, My question is regarding funds transfered to securities premium and whether such funds in securities premium account can be treated as company's income irrespective it is an investment made by equity share holder for subscribing shares by paying Rs. 10 towards face value and Rs. 90 towards securities premium account? Please let me know in which provision under Companies Act 1956 and Companies Act 2013 such securities premium can be considered as income?Section 56(2)viib under Income tax act interpretates about any excess money than fave value of shares are considered as income, but is silent about securities premium which is a part of reserve?




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