Income Tax : ITAT emphasised that valuation must reflect circumstances on the transaction date. AO cannot use hindsight or later valuations to ...
Income Tax : Transaction of sale of Unquoted equity shares will result in double taxability of difference between the FMV and transaction Valu...
Income Tax : Company ♦ Section 115QA, which provides for the levy of tax, on account of buy-back of shares, at an effective rate of 23.296% (...
Income Tax : Section 50CA Special provision for full value of consideration for transfer of share other than quoted share Section 50CA of Incom...
Income Tax : Capital reduction refers to corporate reorganisation activity in which the existing share capital is extinguished. Companies consi...
Income Tax : Bombay Chartered Accountants' Society has made a Representation on 'Suggestions for Amendments in the Income Tax Act', on 24th May...
Income Tax : CBDT has released the draft rules prescribing ‘unquoted shares’ valuation for purposes of Sec. 56(2)(x)/50CA (an important dev...
Income Tax : The Tribunal examined whether GST could be included in gross receipts for presumptive income. It held that GST is a statutory levy...
Income Tax : Tribunal holds that when unlisted shares are sold above the prescribed fair market value, Section 50CA does not apply. The ruling ...
Income Tax : The ITAT found the AO's valuation incorrect, emphasizing that FMV must be determined on the date of transfer, leading to the resto...
Income Tax : The Tribunal upheld that the assessee could adopt NAV for one sale and DCF for another, as both are recognized under Rule 11UA. Si...
Income Tax : Delhi ITAT grants relief to Park View Automotive, deleting a ₹5.59 Cr. addition on share sale. The Tribunal held that an AO cann...
Income Tax : New Income TAx Rule 11UD- Prescribed class of persons for the purpose of section 50CA i.e to whom provisions of section 50CA s...
Income Tax : Determination of Fair Market Value for share other than quoted share. 11UAA. For the purposes of section 50CA, the fair market val...
ITAT Pune held that omission of claiming long term capital loss at the time of filing of original return was not bona fide. Accordingly, rejection of claim of the same in revised return unsustainable in the eyes of law.
Transaction of sale of Unquoted equity shares will result in double taxability of difference between the FMV and transaction Value once in the hands of the Seller under Section 50CA under the Head Capital gain and again in the hands of the Buyer under Section 56(2) (x) under the head Income from Other Sources
Company ♦ Section 115QA, which provides for the levy of tax, on account of buy-back of shares, at an effective rate of 23.296% (20% + 12% SC + 4% H&EC) ♦ Buy-Back Tax has to be paid by the company on the distributed income which is nothing but the consideration paid by the company on […]
Section 50CA Special provision for full value of consideration for transfer of share other than quoted share Section 50CA of Income tax Act, 1961 Read Rule 11UAA Analysis of above mentioned Section with Rule are as under:- Section 50CA i.e. Special provision for full value of consideration for transfer of share other than quoted share […]
Capital reduction refers to corporate reorganisation activity in which the existing share capital is extinguished. Companies consider utilising this route for various business reasons, such as returning excess capital to shareholders, distributing assets to shareholders, loss of original share capital due to accumulated business losses, etc. The process of capital reduction might affect all shareholders […]
Section 50CA provides for adoption of the value to be determined as per the Rules, (for convenience sake referred to by me as FMV ) as the consideration for transfer of shares of a company which are not being quoted, where the actual consideration is lower than that. The difference shall be subjected to tax in the hands of the transferor.
Capital gains in case of transfer of shares ♦ If any capital asset has been transferred like land, building, gold etc. profit shall be called capital gains and if the asset has been transferred within a period of three years, capital gains shall be short term and shall be taxable at the normal rate and […]
Computation of Fair Market Value [FMV] of Unquoted Equity Shares as per Income-tax (20th Amendment), Rules, 2017 notified vide Notification No. 61/2017, dated 12.07.2017. Sale is applicable With Effec From 01.04.2018 and shall apply to assessment year 2018-19 & subsequent years.
Increase in safe harbour limit of 5% under section 43CA, 50C and 56 of Income Tax Act, 1961 to 10% Section 43CA of the Income Tax Act, inter alia, provides that where the consideration declared to be received or accruing as a result of the transfer of land or building or both, is less than […]
Compilation of Section 47(iii), section 56(2)(x)(c), 50D & 50CA -Corporate gifts- an allowable transaction under Income tax? Purpose of section 56 defeated by the ITAT judgement? Brief overview of the judgement delivered On October 4, 2019, in a recent judgement of M/s Direct Media Distribution Ventures Private Limited v/s Principal Commissioner of Income Tax (ITA No: 2211/Mum/2019),the Mumbai bench […]
