Unlisted shares to be taxed only if transferred below fair value: Experts

Taxing receipt of shares of unlisted company: CBDT clarifications affect ongoing litigation

Business Standard 

Jinesh Shah, partner- tax, KPMG in India, and Devarsh Patel, director - deal advisory, M&A tax, KPMG in India, decode the provisions in Section 56 (2) of the Income Tax Act that deals with taxation of receipt of shares of unlisted companies without adequate consideration What are the provisions in Section 56 (2) (viia) of the Income Tax Act, 1961? What was the intent of legislature at the time of its introduction? Section 56(2)(viia) of the Income Tax Act (Act) provides for taxation of receipt of shares of an unlisted company without consideration or for an inadequate ...

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First Published: Sun, January 20 2019. 23:12 IST