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 : Section 50CA provides for adoption of the value to be determined as per the Rules, (for convenience sake referred to by me as FMV ...
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 : ITAT Ahmedabad dismisses Revenue's appeal, validates the sale price of unquoted shares in Bipin Babubhai Panchal's LTCG case, reje...
Income Tax : Bombay High Court ruling states that capital gain tax is not applicable on the transfer of shares as a gift. Detailed analysis and...
Income Tax : Delhi High Court held that reopening of assessment liable to be quashed as PCIT simply rubber-stamped the attempt of AO to reopen ...
Income Tax : ITAT Pune held that omission of claiming long term capital loss at the time of filing of original return was not bona fide. Accord...
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...
The Finance Act, 2017 has introduced two important sections in the Income tax Act, 1961, with the intent of curbing perceived tax abuse: section 56(2)(x) and section 50CA. While the existing anti-abuse section, i.e., section 56(2)(vii) was applicable only in case of individuals, HUF, firms and unlisted companies; section 56(2) (x) has been incorporated to […]
Capital reduction is a commonly adopted tool by companies for re-engineering their capital structure. The need for reducing share capital may arise owing to a number of reasons, such as returning excess funds to the shareholders, adjustment of accumulated losses, minority squeeze out, improving EPS, producing a more efficient capital structure, etc. In this article we have analysed the importance to understand the key tax aspects related to capital reduction.
Determination of Fair Market Value for share other than quoted share. 11UAA. For the purposes of section 50CA, the fair market value of the share of a company other than a quoted share, shall be determined in the manner provided in sub-clause (b) or sub-clause(c),as the case may be,
CBDT has released the draft rules prescribing ‘unquoted shares’ valuation for purposes of Sec. 56(2)(x)/50CA (an important development impacting corporate restructuring) inviting comments from public.
