Answers On Topic: buy back of shares
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?
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THE ASSESEE HAS SOLD LISTED COMPANY SHARES THROUGH BROKERS IN BUY BACK AND STT IS CHARGED.WHETHER SECTION 10(34A) BENEFIT AVAILABLE.IN FY 21-22 TCS,JUST DIAL ETC BUY BACK OFFER HAD COME THROUGH BROKER MODE AND STT CHARGED.PLEASE NOTE THAT IT IS NOT DIRECT PURCHASE BY COMPANY. PLEASE REPLY ABOUT ABOUT SEC 10(34A).
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In Vora Financial Services Pvt Ltd Vs ACIT (ITAT Mumbai) at para no 32 observed as under: Accordingly we are of the view that the provision of section 56(2)(viia) should be applicable only in the case of where the receipt of share becomes property in the hands of recipient and the shares shall become property of the receipt only it is is shares of any other company, In the instant case the assesses herein has purchased its own shares under the buy back scheme and same has been extinguished by reducing the capital and hence the test of becoming property…
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Assessee company is a private limited company and has issued its shares of Rs. 100/- each fully paid up at a premium of Rs. 80/- in the year 2010. As on today the value of the shares is Rs.500/-. the articles of association of the company has a clause for giving option in case of transfer of shares by any shareholder to the existing shareholders only. None of the existing shareholder are ready to buy the said shares from the shareholder who is interested in selling. In this situation can company being a private limited company buy back the shares…
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Facts: In case of a unlisted company, buying back it's own shares at face value of Rs.10/- when the fair market value of share as per income tax rules, is Rs.300/ and the said share ,was allotted at a premium of Rs.90/-. Query: Whether provisions of section 56(2)(X) and section 50CA of IT act providing deeming fiction of income , shall be applicable ? Whether benefit of the Hon'ble Mumbai Bench ITAT decision in case of VORA FINANCE shall be available to the assessee company and also the shareholder and the difference in the buy back price and FMV shall…
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A pvt ltd company wants to buyback both preference & equity shares at discount to the issued price. Is there any bar under the Companies act 2013 ? Further , whether to determine buyback price FMV concept through registered valuer compulsory , since ROC sometimes dont approve the forms
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Buy back of shares by Pvt Ltd cos