Fresh issue of shares

Amendment in 56 (2) is for excess consideration received over fmv, which would be taxable as IFOS.

Thanx Ishan

Please suggest the tax implication in the hands of the subscriber of fresh issue.

Would the difference amount be taxable in the hands of the buyer.

Section 56(2) shall be applied only if Shares are issued at a Premium i.e. amount charged is higher then the face value of share.

if shares are issued at face value then section 56(2) is not applicable.