Valuation of shares

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Zaid Patanwala (Querist)
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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.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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05 May 2014 no, as such provision is not specifically mentioned u cannot take it as loss?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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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..

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