11. It has been proposed in the Finance Bill that any consideration received by a closely held company in excess of the fair market value of its shares would be taxable. Considering the concerns raised by ‘angel’ investors who invest in start-up companies, I propose to provide an enabling provision in the Income Tax Act for exemption to a notified class of investors.

Extract From FM Budget speech dated 7-5-2012 on Finance Bill, 2012

 

1.       It has been proposed in the Finance Bill that any consideration received by a closely held company in excess of the fair market value of its shares would be taxable.  Considering the concerns raised by ‘angel’ investors who invest in start-up companies, I propose to provide an enabling provision in the Income Tax Act for exemption to a notified class of investors. 

More Under Income Tax

Posted Under

Category : Income Tax (25488)
Type : News (12749)
Tags : Budget (1482)

Leave a Reply

Your email address will not be published. Required fields are marked *