Tax on purchase of unlisted shares below nominal value
I have purchased 50000 shares from a private limited company at a discounted price of Rs.14 per share in March 2015. On 31st March, 2015, as per company valuation, the book value per share was Rs.29. Am I liable to pay income tax on the unrealised discount of Rs.15 per share?
Asked 3 years ago in Taxation from CHENNAI, Tamil Nadu
yes, you will be taxed u/s 56 (2) (vii) for the difference in the value. however if by purchasing the said shares, the gain incurred is less than INR 50,000, such will be exempted from tax.