06 August 2010
My client is pvt ltd company and it has been alloted share to other pvt ltd co. B4 1 year, now they wants to repurchase that shares from other pvt ltd co. Share alloted @ Rs. 100 each of face value of Rs. 10 and repurchase value is Rs. 10 each in the current date means 1/8/2010. Is there buyer liable to pay tax on deferent between book value (Rs.100) and repurchase value (Rs.10)? Give me also Income tax Section No.
CAclubindia
