Section 56(2)vii

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Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2014 what are tax implications of buying share of a company having shares of some other company bought at less than FMV (before 56(2)vii was applicable
please reply at rishabhrj18@gmail.com

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 June 2014 it is not covered under 56(2)(vii) but under 56(2)(vii)(a)

the tax implication is simple. If the difference between purchase price and FMV is more than Rs 50000, then the difference between FMV and purchase price shall be taxed in the hands of the purchasing company under "income from other sources"

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Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2014 sir read my question carefully
m buying shares of a company at FMV having shares bought less than fmv at that time when 56(2)viia was not applicable

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