Section 56(2)(viia) of income tax act

1861 views 1 replies

Respected All,

 

W.r.t. Sec. 56(2)(viia) of the IT Act, 1961, kindly advice on the following:

 

If a listed company purchases shares of a unlisted company at a consideration lower than the market value, will the difference amount will be chargeable to tax if the same exceeds Rs. 50000/-.

 

Please advice.

 

Regards,

Priti

Replies (1)

Priti,

As per section 56(2)(viia), a company means a company in which public are not substantially interested. When a listed company is involved either at the transferor's end or at the transferee's end, the provisions of this section will not apply. This section will be attracted, in case of companies, only when transfer takes place between two unlisted companies.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details