I-T Department withdraws circular on share transfers

NEW DELHI: The I-T Department has withdrawn a four-day-old circular relating to transfer of shares for “no or inadequate consideration”, saying the matter is sub-judice.

The CBDT had on December 31 issued a circular clarifying applicability of section 56(2)(viia) of the I-T Act for “issue of shares by a company in which public are not substantially interested”.

The Congress had welcomed the December 31 circular stating fresh issuance of shares are not taxable, saying it vindicated the party’s stand in the Associated Journals Limited case pending before the SC.