TMI Short Notes

Other Sources - Share premium received by closely held company [Sec. 56(2)(viib)]

1. X Ltd., closely held company issues 1,000 shares to Mr. A (resident) whose face value is 10, issue price is 40 and fair market value is 42. What is the taxability of X Ltd.? Would your answer be different if the fair market value is 31 instead of 42?

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