Section 56(viia)

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ANIL AGARWAL (Querist)
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25 May 2016 PVT. LTD. CO. ISSUED 10.00 lacs SHARES AT PAR 10/- TO ANOTHER PVT. CO. FOR 100.00 LACS DURING THE F.YR. 2015-16 DESPITE HAVING B.V OF 196/- PER SHARE. TOTAL PAID UP CAPITAL BEFORE ISSUE 1.00 LACS AND RESERVES SURPLUS 18.60 LACS. APPLYING THE SECTION 56(viia) TAX WILL LEIVED 186/- PER SHARE. THE TOTAL AMOUNT COMES TO [186*10 LACS ] 18,60,00,000/- IS THE SAME CORRECT. PLEASE REPLY

Rupesh Jain

Rupesh Jain (Expert)
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25 May 2016 YES IT TAKE THE INCOME AND YOU HAVE TO PAY THE TAX ON THAT AMOUNT

ANIL AGARWAL

ANIL AGARWAL (Querist)
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25 May 2016 THANKS, BUT HOW THE 18.6 CRORES (186*10.00 LACS SHARES) WILL BE TAXABLE AGAINST THE INVESTMENT OF 1.00 CRORE BY INVESTING COMPANY. THE TAX AMOUNT AT 30% ON 18.60 CRORES WILL 5.58 CRORES, WHEREAS INVESTMENT IS 1.00 CRORE, IS THIS LOGICAL?