• 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 1 year 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. 
Shaveta Chaudhary (Sanghi)
Advocate, Chandigarh
821 Answers
60 Consultations
5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Tax Lawyers

Kiran N. Murthy
Advocate, Bangalore
766 Answers
51 Consultations
5.0 on 5.0
Niranjan
Advocate, Bangalore
2 Answers
0 Consultations
Not rated