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

Others 137 views 1 replies

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

Replies (1)
There is no impact on company in so far as conversion is concerned.
Hope it's being converted as per prospectus terms and conditions.


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