P C Agrawal
(Registered independent director Past Ch)
(8229 Points)
Replied 19 February 2014
Section 56(2)(viib) of IT Act provides that if a company issues shares at premium at a price higher than fair market value, same will be chargeable to tax as other income. It applies to issue of shares by a company and not to transfer of shares.
riteek
(student)
(25 Points)
Replied 19 February 2014
what if the shares are issued at discount?
for example Rs. 100,000,000 (ten crores) being issued at RS. 1,000,000(ten lakh).
P C Agrawal
(Registered independent director Past Ch)
(8229 Points)
Replied 20 February 2014
CAclubindia
