12 January 2026
In case of Pvt. Ltd. Co. Incorporated 2 years back and at the time of formation shares were subscribed by key management persons as a promoter of Company. They were holding the shares in a capacity as a legal members and not as beneficial member and undertaking was given by the management persons. Now shares are to be transferred to actual beneficial owner and share value per share as per net Asset Basis is more than face value. If the shares are to be transferred what price should be considered whether face value or net assets method value??
14 January 2026
Even though shares were held as nominee legal members, transfer to beneficial owners must be done at Fair Market Value under Net Asset Method, not at face value. Transfer at face value will trigger income-tax additions under Sections 56(2)(x) and 50CA.
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