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TMI BlogIncome-tax (28th Amendment), Rules, 2016 - Special Provisions Relating to Tax on Distributed income of Domestic Company for Buy-Back of SharesX X X X Extracts X X X X X X X X Extracts X X X X ..... , 2016. (2) They shall come into force from the 1st June, 2016. 2. In the Income-tax Rules, 1962 , after PART-VII B , the following part shall be inserted, namely: - PART VII-BA Special Provisions Relating to Tax on Distributed income of Domestic Company for Buy-Back of Shares 40BB. Amount received by the company in respect of issue of share. (1) For the purposes of clause (ii) of the Explanation to sub-section (1) of section 115QA, the amount received by a company in respect of the share issued by it, being the subject matter of buy-back referred to in the said section, shall be determined in accordance with this rule. (2) Where the share has been issued by a company to any person by way of subscription, am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any, then, the amount received by the amalgamating company in respect of such share or shares determined in accordance with this rule, shall be deemed to be the amount received by the amalgamated company in respect of the share so issued by it. (6) The amount received by a company, being a resulting company in respect of shares issued by it under a scheme of demerger, shall be the amount which bears the amount received by the demerged company in respect of the original shares determined in accordance with this rule in the same proportion as the net book value of the assets transferred in a demerger bears to the net worth of the demerged company immediately before such demerger. (7) The amount received by the demerged company in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following formula- Amount received = A-B/C A= book value of the assets in the balance-sheet as reduced by any amount of tax paid as deduction or collection at source or as advance tax payment as reduced by the amount of tax claimed as refund under the Income-tax Act and any amount shown in the balance-sheet as asset including the unamortized amount of deferred expenditure which does not represent the value of any asset; Explanation. -For determining book value of the assets, any change in the value of the assets consequent to their revaluation shall be ignored. B= book value of liabilities shown in the balance-sheet, but does not include the following amounts, namely:- (a) capital, by whatever name called, of the proprietor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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