Issue shares at premium

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CA SUNNY GUPTA

CA SUNNY GUPTA (Querist)
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29 April 2014 What are the tax implications of issuing shares at premium by a closely held company

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 April 2014 while there is no restriction on issue of shares at premium by a closely held company, where the value at which shares are issued exceed the fair value as computed under Rule 11U/11UA of the Income tax Rules, 1962, the value in excess of the fair value shall be considered as income of the Company under section 56(2)(viib) of the Income-tax Act 1961

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