Section 56(2)(viia /viib)
This query is : Resolved
Goutam Jain
(Querist)
11 June 2013
A Private limited company is alloting shares to its directors.The FMV Calculated as per section 56(2)(viib) is Rs25 and company is issuing share at Rs. 20/-
1. Whether the difference amount between FMV and Issue price will be taxable in hands of directors u/s 52(2)(viia)?
2. Also whether there will be any liability in hands of company?
Pls reply asap
Thanks in advance
1. Whether the difference amount between FMV and Issue price will be taxable in hands of directors u/s 52(2)(viia)?
2. Also whether there will be any liability in hands of company?
Pls reply asap
Thanks in advance
CA PARAS BAFNA
(Expert)
11 June 2013
Section 52(2)(viia) is applicable to firms and private companies.
.
You may search possibility of taxability of this transaction to the Director U/s 56(2)(vii)(c)(ii) where such difference exceeds Rs 50000/- (in present case if more than 10000 shares are allotted to the director at concessional rate).
.
.
You may search possibility of taxability of this transaction to the Director U/s 56(2)(vii)(c)(ii) where such difference exceeds Rs 50000/- (in present case if more than 10000 shares are allotted to the director at concessional rate).
.
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