Dear Members,
Does Issue of shares through Right Issue requires Valuation of shares by CA, or Can the shares be issued at Rs.10 (nominal value). I Think there is no restriction in Companies Act, But does Income Tax Mandates valuation of shares before issuing ?? because many times I have seen notice from Income tax asking for valuation of shares even when it was issued at par.
Income Tax Act prescribes the valuation rules for unquoted shares. Therefore, to ensure share proceeds does not include any income portion that might be taxable under the act and to ensure proceeds have not been misused, income tax department issues notice even in case of shares issued at par.
So, can I issue shares at PAR.
| Originally posted by : Swati Sharma | ||
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So, can I issue shares at PAR. |  |
Yeah subject to the provision of the Companies Act and Income Tax Act.
CAclubindia
