Sec 56

[Vinay Surana]

Hi Team,

My company received Loan amounts from the subsidiary companies and directors in the previous year 11-12 and we considered it as loan until 11-12. But there after the management of the decide to convert the loan amount in the equity in the Financila year 12-13.

The FMV in the financial year 11-12 is low compared to 12-13.

Can we convert it as equity in 12-13 or we have to repay it and get it once again as fresh money.

Please quote what are consequences and possible ways to do safe way without attracting any penalty provisions or doubtfull in the minds of Assessing officer.

Please revert back at the earliest as it is urgent.

Thank You

With regards

C Vinay Surana 

[Vinay Surana]

Can some one give a answer to this problem, if possible