Issue of shares at premium by a company ....
Will it attract Capital Gain ?
Dhawal Mohnot (Practicing) (449 Points)
27 April 2010Issue of shares at premium by a company ....
Will it attract Capital Gain ?
Amir
(Learner)
(4016 Points)
Replied 27 April 2010
HI Bro.,
I m wondering what made u think that way......:)) {Pls don't misunderstand me, just a thought........ nothing else!}
Anywaz,
No issue of shares either at premium or at par or at discount are not treated under Capital Gains.
Simple reason "NO Capital asset is transfered" while a Company issues shares rather asset is created with this issue process.....
{Though their redemption will definately be treated under head Capital gain}
Dhawal Mohnot
(Practicing)
(449 Points)
Replied 27 April 2010
not a problem at all sir. I und it was silly. But i just wanted to make myself clear rather than to live with this doubt in mind.
I tried going through all the sections possible . Was confident that it wont be the case . But even then wanted to confirm once.
Thanks bhai for the help.
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 28 April 2010
since there is no transfer in the hands of company,no capital gain arises.and very much agreed with amir bhai
CAclubindia
