Different issue price of shares

Pvt ltd 361 views 2 replies

Shyamala

Business Analyst

74 Points Joined June 2011

Hi,

Whether the company can allot shares at two different price in the same month( i.e., One lot of shares issued at less than the FMV and another lot of shares at a premium )

Is there is any correlation between the two issues ?

Thanking in advance

Shyamala B

Replies (2)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

You have to take care of Section 56 of IT Act. If shares are issued at a price higher than the share valuation, the difference could be added to your income.