Please Help: Income Tax
Posted Date : 23-Apr-2016 , 06:31:04 pm | Posted By: S GOYAL & ASSOCIATES
Category :
Income Tax | Answers :
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Comments :
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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). |
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| Posted By : B L MAHESHWARI |
03-May-2016, 12:32:05 |
| I 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). |
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