Incometax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2012 Pvt. Ltd. Company had sold the 5% stake of the company to an Indian Resident. Company has collected share premium while selling the stake of the company. Whether share premium collected by a company is taxable ? If yes, then how the taxability be determined?

Also, consider the above query with NRI?

CA Prashant Gupta

CA Prashant Gupta (Expert)
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16 April 2012 Share premium is not taxable in income tax in hands of company.

If a person takes a stake in newly incorporated company as a promoter then no tax liablity arise in hand of company.

Incase of sale of share by a shareholder to another person capital gain arise in hands of seller.