A promoter director is holding 100000 shares in an unlisted company-The shares are acquired at Rs100
per share-the total number of shares 500000 @ 100 -Total paid up capital 5 crores
after 10 years the capital and free reserves of the company is 10 crores-The company wants to buyback
director shares @ 200 per share(based on intrinsic value) as per section 77/77A of companies act
a)for capital gains calculation in the hands of promoter director-what will be the cost of purchase
whether rs.100 or intrinsic value of share(buy back price)-Rs. 200
CAclubindia
