Hi
We have started a pvt ltd in 2013 with paid up capital 1crore, authorised capital 5 crore.
Now we have received investment of Rs 3 crore for 375000 shares @ Rs. 80 per share. Par value of share is Rs. 10.
In this case the capital surplus around 2.62 crores is taxable or not ?
If taxable what is the tax rate ? please clarify.
Thanks
In the context of Income Tax Act 1961
if closely held company (pvt co) issue share where
issue price of share > fair market value of share then the difference shall be taxable under head IFOS in the hands of COMPANY
The amount is taxable in sec 56 of income tax act but the valuation of share would be done by the merchant banker and not on the bases of book value.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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