TaxTMI 
TaxTMI 
Can mr. A purchase shares of company amounting to rs. 30000/- in cash??
Is there any tax implication on the same with respect to income tax as well as Companies Act 2013
CASH PURCHASE OF SHARES
23 Jun 2021 
1 Reply 
2585 Views Asked by
Cash purchase of shares: permitted but onus to prove genuineness and comply with transfer formalities.
Cash acquisition of shares is not per se prohibited, but the onus of proving genuineness of the transaction falls on the purchaser; the purchaser must complete and preserve all share transfer formalities and supporting documentation. The response does not identify specific income-tax or Companies Act consequences, instead stressing documentary compliance and readiness to meet scrutiny. (AI Summary)
Cash acquisition of shares is not per se prohibited, but the onus of proving genuineness of the transaction falls on the purchaser; the purchaser must complete and preserve all share transfer formalities and supporting documentation. The response does not identify specific income-tax or Companies Act consequences, instead stressing documentary compliance and readiness to meet scrutiny. (AI Summary)