In case the consideration is equal to the face value, then will the section 115QA apply? For eg: Shareholder has purchased the share at Rs.10, and the company is buying back the share at Rs.10 only, then will there be any taxability in the hands of the company?
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Section 115qa
Replies (2)
Hi Riddhi,
As per section 115QA taxability is on, "distributed income" which is defined to mean difference between price of share at the time of buyback reduced by price at which it was issued.
Hence in your case i don't feel taxability will rise.
Thanks!
What if my buyback price is lesser than my issue price?
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