What is the tax treatment of share application money forfeited by a Pvt. Limited Company or against which the applicant shareholder waives off his rights to get shares? Will it be a capital receipt taxabale as a capital gain or a revenue receipt as Income from Other Sources?
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Treatment of share application money forfeited/waived off
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I am not sure but i don't think it is taxable at all. The forfeited amount will be directly transfered to capital reserve account.
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