24 May 2012
Let us suppose the fair value of the share of a PRIVATE COMPANY is Rs. 100.
The company issues shares @ Rs. 300.
Rs. 200 per share shall be deemed to be the income of the company u/s 56(2)(viib).
Querist :
Anonymous
Querist :
Anonymous
(Querist)
25 May 2012
Thanks a lot Sir. One thing I would like to understand is that if there is a newly established private company, can't it issue shares at premium. Is there any relief for such newly formed private companies?