| Question And Answer | |
|---|---|
| Subject: | Buy back of shares by Pvt Ltd cos |
| Category: | Income-Tax |
| Querist: | bs |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | buy back of shares |
| Date: | December 2, 2022 |
After introduction of 56[2]x , will Buy back of shares by Pvt Ltd cos be covered in the hands of shareholders on difference in FMV and buyback price?
As the shareholder receives a consideration higher than the FMV of the shares. Therefore, there is no inadequate consideration or indirect gift. Therefore, section 56(2)(x) of the Act will not apply.
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