Share forfeited amount taxable or not in fy 01.04.2015 to 31

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Respected Sir,

In Direct Taxes code there was a provision that amount of forfeiture of shares will be taxed at the hand of company which forfeits the shares.

Now DTC will not be applicable from 01.04.2015 to 31.3.2016.

Let me know whether the provision that amount of forfeiture of shares taxable has been included in the present Budget or not.

In another words, whether it makes any difference at the hand of company which forfeits the shares from the point of income tax if share are forfeited in this financial year i.e 01.04.2014 to 31.03.2015 or in next financial year i.e. 01.04.2015 to 31.3.2016.

Other formalities are complete from the point of view of companies act if company decided to forfeit the shares before 31.3.2015, i.e.warning notice of forefeiture has already given in Febuary 2015.

But it will be easier for company to reissue them in same financial year if shares forfeited in next financial year i.e. 01.04.2015 to 31.3.2016.

Thanks and Regards,

Replies (2)

Forefieted amount will not be taxable in the hands of a company if amount is forefieted in respect of issue of shares. No proposals was made in present budget also regarding its taxability. 

 

Thanks a lot for reply. O.k. Forefieted amount will not be taxable in the hands of a company if amount is forefieted in respect of issue of shares.

let me know small further, that even if after  the company has reissued shares in FY 2015-16 and any surplus left after reissue(excess in shares forfeited a/c after reissue), this surplus left will not be taxable in the hands of company.

Waiting for your response,

With Regards,
 

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