Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

This section is now closed. Please ask your questions at our new Q&A section
Query asked by Suresh Goyal on July 21, 2022

Re: Your opinion on purchase of shares less than book value under Income Tax Act

Dear Sir,

A company with a share capital of Rs.2 Lakhs each share price is Rs.10 and Reserve of Rs.5 Crores was taken over by new director from the old director only by paying Rs.2 Lakhs i.e. face value of share. Now the question arises the book value of share is many time more than the amount paid by the new director who are two in number and paid Rs.1 Lakh each to the existing two director. As only face value of shares is paid, what is the position of book value minus paid up value in the hands of the buyer. Whether the buyer will have to pay tax on the difference. The case relates to assessment year 2016-17. Please give your views.

Thanking You,

Yours Sincerely,
CA S. K. Goyal

Reply of expert awaited
Reply of the Expert is awaited. Please check back later;


Leave a Reply

Your email address will not be published. Required fields are marked *