https://www.taxtmi.com/article/detailed?id=5446 Share premium is principally a capital receipt reflected in reserves and usable only for limited capital purposes. A specific deeming provision treats excess consideration received on issue of shares by closely held companies as income where the issue price exceeds both face value and fair market value; listed and public interest companies are excluded. Valuation under prescribed methods and qualified valuers determines fair market value and whether premium attracts tax, while unexplained credits rules can separately render contributions taxable if subscriber identity or genuineness is not satisfactorily established. en-us Wed, 22 Jan 2014 06:37:21 +0530 Wed, 22 Jan 2014 06:37:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=5446 Share premium is principally a capital receipt reflected in reserves and usable only for limited capital purposes. A specific deeming provision treats excess consideration received on issue of shares by closely held companies as income where the issue price exceeds both face value and fair market value; listed and public interest companies are excluded. Valuation under prescribed methods and qualified valuers determines fair market value and whether premium attracts tax, while unexplained credits rules can separately render contributions taxable if subscriber identity or genuineness is not satisfactorily established. Articles Income Tax Wed, 22 Jan 2014 06:37:21 +0530 https://www.taxtmi.com/article/detailed?id=5446