Amendment of section 56(2)

Dear All,

There is a proposed amendment of section 56(2), relating to receipt of excess money over fair market value for the shares of closely held company. The amendment will take effect from the 1st April, 2013.

Please tell me whether it has any retrospective effect i.e., whether the income of previous year 2011-12 will come under the perview of the amendment?

Awaiting for early reply

 

 

Replies (4)

As per the Memorandum of Direct Taxes

 

"This amendment will take effect from 1st April, 2013 and will, accordingly, apply in relation to the assessment year 2013-14 and subsequent assessment year.

Income of the previous year 2011-12 will not come under the purview of this Amendment.

please tell me about section 56A......

can we take entries from someone whether relative or not without consideration?????

If you accept gifts from relatives,it is completely tax free.

In case of others, if amount received > FMV, then full amount is taxable.

Hi,

If company has issued the shares in A.Y.2012-13 and call for the first call and that call is received in A.Y.2013-14, will the amendment in budget will apply?

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