X Ltd., closely held company issues 1,000 shares to Mr. A (resident) whose face value is 10, issue price is 40 and fair market value is 42. What is the taxability of X Ltd.? Would your answer be different if the fair market value is 31 instead of 42?

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ent if the fair market value is 31 instead of 42?<br>Other Sources - Share premium received by closely held company [Sec. 56(2)(viib)] Income Tax – Other Sources<br>Income Tax<br>Manuals<br>Dated:- ....