Taxability of Shares for consideration other than for cash

vijay krishnan (article ) (30 Points)

07 March 2010  

 A private limited company has issued shares to directors/promoters for consideration other than for cash. I wanted to know about the taxability in the hands of directors and company. If taxable, under which head of income (for directors/promoters)

The directors/promoters genuinely have no source to pay tax. Can the tax be postponed until actual disposal of shares?