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May 17, 2023 · Section 56 (2) (viib) of the Income Tax Act encompasses a provision that pertains to closely-held companies issuing shares to resident investors at a value exceeding the “fair market value” of those shares.
3 days ago · This led to an addition of Rs. 3,60,83,000/- under Section 56 (2) (viib) of the Act, which taxes excessive premium on shares issued over their fair market value (FMV). Solitaire BTN Solar Pvt Limited contested this addition before the CIT (A), arguing that the premium was justifiable as it reflected the true value of the company.
Aug 14, 2023 · A article provides a guide on Section 56(2)(viib) which addresses taxation of excess share premiums by private companies, including recent updates, judicial precedents, practical challenges, and factors to consider for valuation and avoiding litigation.
Deciphering the amendments to Section 56(2)(viib) & Rule 11UA(2) of the Income Tax Act post-Finance Bill 2023, impacting FDI and startup ecosystems. Explore the key provisions and valuation methodologies for unquoted equity shares received from residents and non-residents.
Section 56(2)(viib) of the Income Tax Act levies tax on the company that has issued equity shares for more than their fair market value.
Dec 20, 2018 · The objective of introducing section 56 (2) (viib) was to discourage the generation and use of unaccounted money done through subscription of shares of a closely held company, at a value which is higher than the Fair Market Value (FMV) of shares of such company.
Section 56(2)(viib) of the Income-tax Act, 1961 (the Act) provides for taxing excess of the aggregate consideration received by specified companies from the resident investors over the fair market value of shares,
56(2)(viib) of the Income-tax Act, 1961 (Act) are applicable to shares allotted at premium at the time of allotment (after the insertion of the aforesaid section in the Act), even if the share application
Jun 12, 2020 · Exemption has been given to Start Ups for the purpose of clause (viib) of sub-section (2) of section 56 of the Act.
Oct 12, 2023 · Sec 56 (2) (viib) of the Act (commonly known as the angel tax provision) provides that where a closely held company, receives, from a resident person, any consideration for issue of shares that exceeds the face value of such shares, then the aggregate consideration as exceeding the fair market value of the shares shall be chargeable to income-ta...
