Please Help: Income Tax
Posted Date : 23-Apr-2016 , 06:31:04 pm | Posted By S GOYAL & ASSOCIATES
Assessee a company purchases/buy back its own shares at a price less than its book value. my queries are whether buyback is covered under the definition of receives and whether difference between the purchase price and book value is taxable u/s 56 (2)(VIIa).
Category : Income Tax | Answers : 0 | Comments : 1 | Hits : 255
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B L MAHESHWARI
03-May-2016 , 12:32:05 pmI do not think that this is taxable . Company`s buying its own shares , there is no profit or loss for taxability purpose . Whatever difference is there, is normally accounted as Reserve (Positive or Negative).