This is premium content. Please become a Premium member. If you are already a member, login here to access the full content.
Share buy back can be made at a price lower than FMV or Book Value: ITAT
Case Law Details
- Case Name
- M/s Vora Financial Services Pvt Ltd Vs ACIT (ITAT Mumbai)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2014-15
- Courts
- All ITAT, ITAT Mumbai
Upgrade to Basic or Premium to download.
Already Upgraded? Log in.
Advertisement
M/s Vora Financial Services Pvt Ltd Vs ACIT (ITAT Mumbai)
Buy Back of securities below FMV
As we have known till date, in case of buy back of equity shares of a private limited company, the tax liability on the same, in the hands of the company, was as under:
1. Where the buy back was without a consideration: the whole fair market value(FMV) of such shares was taxable;
2. Where the buy back was at a price below the FMV (where difference between the actual price received and FMV being more than Rs. 50,000): The whole difference between the Actual price and the FMV becomes tax...
Author Info
