CASH PURCHASE OF SHARES, Income Tax

[NAMAN DOKANIA]

Can mr. A purchase shares of company amounting to rs. 30000/- in cash??

Is there any tax implication on the same with respect to income tax as well as Companies Act 2013

Posts / Replies

[SayadAziz Ahmad]

Pl. Refer case law Swati Luthra vs. ITO Delhi 2019 (7) TMI 526 - ITAT DELHI. In this case the honourable court geld that there is no interference in law which prohibits sale of shares in cash. The only look out is that the onus of prving genunity of the transactions will be on the shoulder of the assessee. So all legal formalities for transfer of shares should be made perfect in all respect.