| Question And Answer | |
|---|---|
| Subject: | Issue of shares |
| Category: | Income-Tax |
| Querist: | Sathi Suresh |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | rule 11UA, Valuation of shares |
| Date: | November 29, 2023 |
The assessee is a private limited company. The share value of the company is Rs.100/- As per Balance sheet the share value is Rs.350/- Can the company issue shares to an investor at face value? Ifso what would be the income tax implication in the hands of the company as well as the Investor?
The shares have to be valued according to Rule 11UA of the Income-tax Rules, 1962 to avoid any additions in the hands of the Company or investor.
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