Forfeiture of shares

What is the tax treatment of forfeiture of shares in the hands of the company? Whether the forfeited amount on equity shares is taxable as income?

Is there any way to save the income tax on forfeited shares?

Please refer applicable sections or case reference.

Replies (1)

Forfieture of shares is not taxable in the hands of the Company. Its a Capital Receipt and hence NOT Taxable.

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