Share premium taxation ceases to apply prospectively, removing clause viib's charge on excess consideration for non public company share issues. Clause 23 amends section 56(2)(viib) of the Income tax Act to provide that the provisions of clause (viib) shall not apply on or after 1st April, 2025; clause (viib) had charged as income the excess of consideration received over fair market value on issue of shares by companies not publicly interested, subject to exceptions for venture capital vehicles and notified classes.
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Provisions expressly mentioned in the judgment/order text.
Share premium taxation ceases to apply prospectively, removing clause viib's charge on excess consideration for non public company share issues.
Clause 23 amends section 56(2)(viib) of the Income tax Act to provide that the provisions of clause (viib) shall not apply on or after 1st April, 2025; clause (viib) had charged as income the excess of consideration received over fair market value on issue of shares by companies not publicly interested, subject to exceptions for venture capital vehicles and notified classes.
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