Inclusion of non-resident investors in tax on share premium to curb premium-based tax avoidance schemes. The Finance Bill proposes removing the residency limitation in the tax on excess consideration for issue of shares so that consideration received from ... Summary
Inclusion of non-resident investors in tax on share premium to curb premium-based tax avoidance schemes.
The Finance Bill proposes removing the residency limitation in the tax on excess consideration for issue of shares so that consideration received from non-resident investors will also be chargeable where aggregate consideration exceeds the fair market value computed under the existing FMV formula for unquoted equity shares; the amendment is effective from the first day of April following enactment and applies to the corresponding assessment year and subsequent years.
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