Valuation of shares
This query is : Resolved
Zaid Patanwala
(Querist)
05 May 2014
Dear sir,
As per Finance Bill, 2012; Share premium in excess of the fair market value to be treated as income.
Similarly, if shares are issued at a discount to the fair value, whether that will be treated as loss ???
Please advise.
As per Finance Bill, 2012; Share premium in excess of the fair market value to be treated as income.
Similarly, if shares are issued at a discount to the fair value, whether that will be treated as loss ???
Please advise.
05 May 2014
no, as such provision is not specifically mentioned u cannot take it as loss?
Nikhil Kaushik
(Expert)
05 May 2014
the difference is taxed in the hands of the receiver under 56(2)(vii).
please refer
https://www.deloitte.com/assets/Dcom-India/Local%20Assets/Documents/Business%20Tax%20alerts/2014/Deloitte%20Business%20Tax%20Alert%20-%20Sudhir%20Menon.pdf
in the hands of the company, there should not be any problem..
please refer
https://www.deloitte.com/assets/Dcom-India/Local%20Assets/Documents/Business%20Tax%20alerts/2014/Deloitte%20Business%20Tax%20Alert%20-%20Sudhir%20Menon.pdf
in the hands of the company, there should not be any problem..
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