Income tax implication on FCCB Buy back

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 November 2010 Can some one thro' what is the tax implication in respect of FCCB buy back?

Suppose Rs. 50 cr FCCB is bought at a discount (face value, principal)and paying
Rs. 25 cr , is Rs. 25 cr will be taxable?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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06 November 2010 There is no gain or loss arises on purchase. it arises at the time of sale. so there is no tax implication.

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2010 Hi, Thanks for the swift response, i would like to clarify here that all companies that bought back FCCB offered to tax on diacounted portion".

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