Urgent _ Income tax impact on convertion of pref shares in to equity shares

Venkat Ramana (Article Assistant) (31 Points)

19 December 2019  

If a company issues compulsory convertible preference shares to its share holders, and converts it at a later point of time into a equity shares, what is the income tax in the hands of the company ?

Whether any capital gains / PGBP income will arise ? If so, according to which section it is taxable / not taxable

Please let me know at the earliest