deemed gift on purchase of shares
This query is : Resolved
03 August 2009
ABC PVT LTD Co issue shares to Mr.Sharma at par. the face value of shares is Rs.10/-each.
After 8 month Mr.Sharma sold(Transfer) these shares to Mr.Gupta at Rs.2/-each.
in this transaction mr. Sharma suffered a loss of Rs.8 per share.
will this loss to mr sharma will be treated as deemed gift and will be taxable in the hands of mr Gupta.
what we will be tax implication in above transaction.
is there any changes/proposal in finance act 2009 regarding profit on purchase of shares in hands of Mr.Gupta.
is section 56(2)(vii) covers all assets whether immovable or not.
wii section 50C be also extended to movable property
let us assume that 50C be extended, but how the fair market value of shares of pvt ltd company will be calculated.
After 8 month Mr.Sharma sold(Transfer) these shares to Mr.Gupta at Rs.2/-each.
in this transaction mr. Sharma suffered a loss of Rs.8 per share.
will this loss to mr sharma will be treated as deemed gift and will be taxable in the hands of mr Gupta.
what we will be tax implication in above transaction.
is there any changes/proposal in finance act 2009 regarding profit on purchase of shares in hands of Mr.Gupta.
is section 56(2)(vii) covers all assets whether immovable or not.
wii section 50C be also extended to movable property
let us assume that 50C be extended, but how the fair market value of shares of pvt ltd company will be calculated.
03 August 2009
how the transferee i.e. mr gupta will come to know the cost of shares to (transferror)i.e. mr sharma
05 August 2009
The said transactions may be taxable u/s 56(2)(vii) w. e. f. 01.10.2009.
In case of a private limited company generally the net worth / fair value of shares of the company is decided by the auditor of the company and that should be taken as the price.
In case of a private limited company generally the net worth / fair value of shares of the company is decided by the auditor of the company and that should be taken as the price.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Putting a heading on received mail
- Section 50-fixed asset-->building ceases to exist
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Reprocessing of rectification order AY 2025-26
- Gift Received from nonblood relative
- Regime change
- Consolidated financials
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
