Section 56

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Kapildeo Choudhary (Querist)
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21 April 2010 An individual purchased unqoted equity shares for a consideration which is below the fair market value.

Fair market value of unquoted equity shares minus consideration paid will be taxable under section 56 or not?

An individual/huf/ can purchase equity shares of Private Limited Company for a consideration below the fair market value or not?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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01 May 2010 w. e. f. 01.10.2009 if an individual / huf purchase equity shares of Private Limited Company for a consideration below the fair market value from a non relative then if the diffence between the fair value and sale value is more than Rs. 50,000 the same will be liable for tax u/s 56 as gift

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