banner_ad

Shares consideration paid more than FMV

Others 164 views 6 replies
User Avatar

Learner
3134 Points Posted on 24 October 2018
Hi..

I have below mentioned query.

ABC Ltd acquire 60% shares from Mr Ram, FMV of share is Rs 30/- and ABC Ltd paid Rs 80/- in consideration.

Please let me know if there is any provision attracted in income tax act for paying consideration more than its FMV.
0 Reply Share Follow
On 24 October 2018 at 10:39 Report
Replies (6)
User Avatar

Student
3549 Points Posted on 24 October 2018
For ABC amount received in excess of FMV is chargeable under IFOS u/s 56(2)(viib)
Reply
On 24 October 2018 at 11:00
User Avatar

Learner
3134 Points Posted on 24 October 2018
sir, ABC LTD Paying consideration to purchase shares.
Reply
On 24 October 2018 at 12:28
User Avatar

Student
3549 Points Posted on 24 October 2018
Oh ok...then for Ram CG is attracted and for ABC 80 becomes Cost of acquisition.
Reply
On 24 October 2018 at 12:49
User Avatar

pro badge

Self employed
2193 Points Posted on 24 October 2018
yes it's attracted section 40(A)2 read with carefully
Reply
On 24 October 2018 at 23:28
User Avatar

Learner
3134 Points Posted on 25 October 2018
Sir, as per my understanding it's not expenditure in the hand of ABC LTD
Reply
On 25 October 2018 at 09:09
User Avatar

Student
247 Points Posted on 01 November 2018
there is no any non compliance under the income tax act
Reply
On 01 November 2018 at 17:55


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topic

More recent discussions | Post

Related Topics
Loading

Latest Job Openings

View all
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details