Sourav Chatterjee (Management Trainee) (171 Points)
21 March 2012Dear All,
There is a proposed amendment of section 56(2), relating to receipt of excess money over fair market value for the shares of closely held company. The amendment will take effect from the 1st April, 2013.
Please tell me whether it has any retrospective effect i.e., whether the income of previous year 2011-12 will come under the perview of the amendment?
Awaiting for early reply
Sonam Bidasaria
(CA)
(770 Points)
Replied 21 March 2012
As per the Memorandum of Direct Taxes
"This amendment will take effect from 1st April, 2013 and will, accordingly, apply in relation to the assessment year 2013-14 and subsequent assessment year.
Income of the previous year 2011-12 will not come under the purview of this Amendment.
bhavya
(CA Final Student)
(59 Points)
Replied 16 June 2012
please tell me about section 56A......
can we take entries from someone whether relative or not without consideration?????
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 16 June 2012
If you accept gifts from relatives,it is completely tax free.
In case of others, if amount received > FMV, then full amount is taxable.
CA Hiren Padariya
(Practicing Professional)
(24 Points)
Replied 28 June 2012
Hi,
If company has issued the shares in A.Y.2012-13 and call for the first call and that call is received in A.Y.2013-14, will the amendment in budget will apply?
CAclubindia
