As per finance Act,2013, A new Chapter XII-DA is inserted, which talks about special Provisions relating to tax on Distributed Income of Domestic Company For Buy Back of Shares.
New Section 115QA which states that company will have to pay tax on distributed Income.
As per explanation to the section> Distributed Income= Consideration Paid on Buy Back LESS amount received at the Time of Issue of Shares
Can anyone clarify that if shares were originally issued at Premiun , will that amount will also be reduced from Consideration paid on Buy Back.
Please explain with Example.