Clarification regarding applicability of section 56(2)(viia) of the Income-tax Act, 1961 for issue of shares by a company in which public are not substantially interested.

Clarification regarding applicability of section 56(2)(viia) of the Income-tax Act, 1961 for issue of shares by a company in which public are not substantially interested. https://www.taxtmi.com/circulars?id=59381 Section 56(2)(viia) applies only where a specified company or firm receives shares of a specified company through transfer for no or inadequate consideration as an anti abuse measure; it does not apply to receipt of shares resulting from fresh issuances such as bonus, rights or preference shares by the specified company. en-us Mon, 31 Dec 2018 00:00:00 +0530 Wed, 30 Jan 2019 11:52:00 +0530 TaxTMI RSS Generator Clarification regarding applicability of section 56(2)(viia) of the Income-tax Act, 1961 for issue of shares by a company in which public are not substantially interested. https://www.taxtmi.com/circulars?id=59381 Section 56(2)(viia) applies only where a specified company or firm receives shares of a specified company through transfer for no or inadequate consideration as an anti abuse measure; it does not apply to receipt of shares resulting from fresh issuances such as bonus, rights or preference shares by the specified company. Circulars Income Tax Mon, 31 Dec 2018 00:00:00 +0530 https://www.taxtmi.com/circulars?id=59381