{"id":24009,"date":"2022-01-16T18:10:05","date_gmt":"2022-01-16T12:40:05","guid":{"rendered":"https:\/\/itatonline.org\/digest\/?post_type=qa&#038;p=24009"},"modified":"2022-01-16T18:10:05","modified_gmt":"2022-01-16T12:40:05","slug":"taxability-of-issue-of-right-shares-at-par-by-the-private-limited-company","status":"publish","type":"qa","link":"https:\/\/itatonline.org\/digest\/qa\/taxability-of-issue-of-right-shares-at-par-by-the-private-limited-company\/","title":{"rendered":"Taxability of Issue of right shares at par by the Private Limited Company"},"content":{"rendered":"<p>The assessee is a private limited company engaged in the business of manufacturing of machinery required for construction activity. The intrinsic value of its shares is Rs. 150\/- (Face value Rs. 10\/-). The FMV of the shares is Rs. 200\/-. The company is issuing right shares to the existing shareholders at par i.e Rs. 10\/- per share. What are the tax implications of this transaction under Income Tax Act as well as Companies Act?<\/p>\n<p>Please Guide<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[33],"qa_category":[23],"qa_tag":[483,482],"class_list":["post-24009","qa","type-qa","status-publish","hentry","qa_expert-advocate-shashi-ashok-bekal","qa_category-income-tax","qa_tag-pvt-company","qa_tag-right-shares"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/24009","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=24009"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=24009"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=24009"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=24009"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=24009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}