Tax implications in the hands of the Assessee Company in view of amendment made in section 56 in the Finance Act2010.

Tax implications in the hands of the Assessee Company in view of amendment made in section 56 in the Finance Act2010. https://www.taxtmi.com/forum/issue?id=2535 Whether receipt of new equity by existing shareholders at a price below intrinsic value attracts taxation under the Finance Act 2010 amendment to section 56 hinges on distinguishing isolated tax evasive transfers from routine pro rata rights allotments; the amendment targets atypical undervalued transfers, and a fresh pro rata rights issue to preserve shareholding is unlikely to be treated as an evasion device. en-us Wed, 22 Dec 2010 18:10:49 +0530 Thu, 23 Jan 2025 15:58:27 +0530 TaxTMI RSS Generator Tax implications in the hands of the Assessee Company in view of amendment made in section 56 in the Finance Act2010. https://www.taxtmi.com/forum/issue?id=2535 Whether receipt of new equity by existing shareholders at a price below intrinsic value attracts taxation under the Finance Act 2010 amendment to section 56 hinges on distinguishing isolated tax evasive transfers from routine pro rata rights allotments; the amendment targets atypical undervalued transfers, and a fresh pro rata rights issue to preserve shareholding is unlikely to be treated as an evasion device. Discussion-Forum Income Tax Wed, 22 Dec 2010 18:10:49 +0530 https://www.taxtmi.com/forum/issue?id=2535