Section 56(2) (vi)

This query is : Resolved

pawan maurya (Querist)
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10 August 2010 A PRIVATE LIMITED CO WANT TO ALLOT ITS 100000 EQ. SHARES TO AN INDIVIDUAL AT RS.10/- PER SHARE. THE FAIR MARKET VALUE OF SHARE IS RS.35/-PER SHARE.
WHETHER SECTION 56(2)(vi)OF I.T ACT,1961 IS APPLICABLE OR NOT.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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10 August 2010 Yes the difference between the fair market value of shares and issue price will be taxable in the hands of the individual u/s 56(2)(vi)

Detailed analysis has been made here also.

https://www.caclubindia.com/experts/tax-on-repurchase-of-share-after-31-05-2010-452560.asp