Section 56(2)(viia) Deemed Gift
This query is : Resolved
VIKAS SHARMA
(Querist)
17 May 2010
My query is w.r.t Section 56(2)(viia). In the Notes/Memorandum Explaining Finance Bill, Mr. Finance Minister clarified that the provisions of said section are applicable only when the asset falls in the definition of capital asset for the recipient and therefore the provisions will not apply in case of stock-in-trade.
Query is--Whether SHARES are STOCK-IN-TRADE for an NBFC, meaning thereby that the provisions will not apply on an NBFC, if it purchases shares at a rate lower than the market value.
Query is--Whether SHARES are STOCK-IN-TRADE for an NBFC, meaning thereby that the provisions will not apply on an NBFC, if it purchases shares at a rate lower than the market value.
Pankaj Jhawar
(Expert)
18 May 2010
NBFC are normally not allowed to keep shares as stock. It will further depend upon the Articles of the company and further how you have treated them in the books to accounts and your intention.
So the section may apply
So the section may apply
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