Sec. 56(2)(viib)

This query is : Resolved 

Querist : Anonymous (Querist) 21 May 2012

Could somebody help me in understanding the amendment to the proposal made for Sec 56(2)(viib)in the Union Budget. Thanks in advance.

CA Siddhartha Bhardwaj (Expert)
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) 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?

CA Siddhartha Bhardwaj (Expert)
25 May 2012

There is no relief for private limited companies.

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