deemed gift on purchase of shares
This query is : Resolved
03 August 2009
ABC PVT LTD Co issue shares to Mr.Sharma at par. the face value of shares is Rs.10/-each.
After 8 month Mr.Sharma sold(Transfer) these shares to Mr.Gupta at Rs.2/-each.
in this transaction mr. Sharma suffered a loss of Rs.8 per share.
will this loss to mr sharma will be treated as deemed gift and will be taxable in the hands of mr Gupta.
what we will be tax implication in above transaction.
is there any changes/proposal in finance act 2009 regarding profit on purchase of shares in hands of Mr.Gupta.
is section 56(2)(vii) covers all assets whether immovable or not.
wii section 50C be also extended to movable property
let us assume that 50C be extended, but how the fair market value of shares of pvt ltd company will be calculated.
After 8 month Mr.Sharma sold(Transfer) these shares to Mr.Gupta at Rs.2/-each.
in this transaction mr. Sharma suffered a loss of Rs.8 per share.
will this loss to mr sharma will be treated as deemed gift and will be taxable in the hands of mr Gupta.
what we will be tax implication in above transaction.
is there any changes/proposal in finance act 2009 regarding profit on purchase of shares in hands of Mr.Gupta.
is section 56(2)(vii) covers all assets whether immovable or not.
wii section 50C be also extended to movable property
let us assume that 50C be extended, but how the fair market value of shares of pvt ltd company will be calculated.
03 August 2009
how the transferee i.e. mr gupta will come to know the cost of shares to (transferror)i.e. mr sharma
05 August 2009
The said transactions may be taxable u/s 56(2)(vii) w. e. f. 01.10.2009.
In case of a private limited company generally the net worth / fair value of shares of the company is decided by the auditor of the company and that should be taken as the price.
In case of a private limited company generally the net worth / fair value of shares of the company is decided by the auditor of the company and that should be taken as the price.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Tds on building rent monthly
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- Confusion around Form 26QB fields
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
