{"id":23294,"date":"2021-12-29T09:13:05","date_gmt":"2021-12-29T03:43:05","guid":{"rendered":"https:\/\/itatonline.org\/digest\/?post_type=qa&#038;p=23294"},"modified":"2022-01-04T06:01:44","modified_gmt":"2022-01-04T00:31:44","slug":"buyback-of-shares","status":"publish","type":"qa","link":"https:\/\/itatonline.org\/digest\/qa\/buyback-of-shares\/","title":{"rendered":"Buyback of shares"},"content":{"rendered":"<p>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 at\u00a0 same value on which those have been issues i.e Rs.180\/-? What will be tax implication under income tax act?<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[33],"qa_category":[23],"qa_tag":[142,73,439],"class_list":["post-23294","qa","type-qa","status-publish","hentry","qa_expert-advocate-shashi-ashok-bekal","qa_category-income-tax","qa_tag-buy-back-of-shares","qa_tag-buyback-of-shares","qa_tag-rate-of-tax"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/23294","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=23294"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=23294"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=23294"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=23294"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=23294"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}