Section 56(2)
This query is : Resolved
13 August 2013
If a pvt. ltd. company purchases shares of other pvt. ltd. company at a value less than FMV, then section 56(2) is applicable or not
14 August 2013
Section 56(2)(viia) applies when shares of a PRIVATE COMPANY are acquired by another PRIVATE COMPANY without consideration or for a consideration which is LESS than the FMV by an amount exceeding Rs. 50,000
Accordingly, if the difference between the FMV and the consideration exceeds Rs. 50,000 then Section 56(2)(viia) will be applicable and the whole FMV shall be the income of the purchaser company.
Accordingly, if the difference between the FMV and the consideration exceeds Rs. 50,000 then Section 56(2)(viia) will be applicable and the whole FMV shall be the income of the purchaser company.
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