https://www.taxtmi.com/article/detailed?id=5111 Reduction of share capital under section 100 allows extinguishment or cancellation of share liability or repayment of excess paid up capital subject to court confirmation; tax character depends on whether the reduction effects a transfer with monetary consideration for Section 45/2(47)/48 to apply. If rights are extinguished and consideration is received or accrues, capital gain or loss may arise; if old shares are merely substituted by new shares without change in proportional asset interest or monetary consideration, the loss is generally treated as notional and not allowable. en-us Wed, 24 Apr 2013 13:52:47 +0530 Wed, 24 Apr 2013 13:52:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=5111 Reduction of share capital under section 100 allows extinguishment or cancellation of share liability or repayment of excess paid up capital subject to court confirmation; tax character depends on whether the reduction effects a transfer with monetary consideration for Section 45/2(47)/48 to apply. If rights are extinguished and consideration is received or accrues, capital gain or loss may arise; if old shares are merely substituted by new shares without change in proportional asset interest or monetary consideration, the loss is generally treated as notional and not allowable. Articles Income Tax Wed, 24 Apr 2013 13:52:47 +0530 https://www.taxtmi.com/article/detailed?id=5111