Tax laws
This query is : Resolved
17 April 2014
The shares which are issued at premium is treated as income in the hands of company but why it is so?
17 April 2014
premium is not the income in hand of company
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17 April 2014
Thanks for your reply sir, but I have read one case in which the Company received a notice from Income Tax Authority containing tax liability of company on the premium which is income of the company in the eyes of income tax.
17 April 2014
can you please give case citation here?
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17 April 2014
Sir I don't know details but I got the reference of Circular issued in this regard issued by CBDT in 2010. So that I was confused is it Possible?
17 April 2014
you dont have to confuse at all. the position is simple. as such securities premium do not form part of income.
However, if the company is covered under section 56(2)(viib), any consideration received in excess of the fair market value shall be considered as income wef 1 April 2013
However, if the company is covered under section 56(2)(viib), any consideration received in excess of the fair market value shall be considered as income wef 1 April 2013
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