Tax on distributed income for buy-back: rules for computing amount received by company for issued shares. Rule 40BB prescribes methods to determine the amount received by a company for shares subject to buy-back. It treats subscription proceeds (including premium) as amount received, reduces that amount by sums previously returned unless additional tax was paid, deems credited fair market value for employee equity and sweat equity, provides formulae for shares issued as consideration for assets or liabilities and for succession/conversion from firms, carries amounts through amalgamation and demerger proportionately, treats conversion of securities as the amount received for those instruments, and mandates FIFO for indistinguishable dematerialised shares, otherwise defaulting to face value.