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section 56

harshita (ca finalist) (126 Points)

31 March 2019

company gets it's unsecured loan converted into share application money. is it will attract any tax liability under section 56.please help

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Priya Kashyap (Student) (7048 Points)
Replied 31 March 2019

no tax liability

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harshita (ca finalist) (126 Points)
Replied 31 March 2019

in the hand of shareholders???

Priya Kashyap (Student) (7048 Points)
Replied 31 March 2019

for such transfer special resolution must be passed in the company prior taking loan and file mgr 14 within period of 39 days.
coming to the tax liability in the hands of shareholders- no liability shall be born but in case of dividend distribution as the case may be ITA,1961

prefer to get someone else's view also

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