Shares Issued for Premium above FMV Taxable for Closely-held Company under Income from Other Sources u/s 56(2)(viib) of Income Tax Act, exempt for Investor: ITAT

By Devanand T R - On June 12, 2023 11:45 am - 2 mins read

Shares Issued - Shares Issued for Premium - FMV Taxable - FMV - Income from Other Sources - Income Tax Act - Income Tax - Investor - ITAT - taxscan

The Income Tax Appellate Tribunal (ITAT), Patna Bench has held that the differential amount received by way of the issue of shares for a Premium above the Fair Market Value (FMV) shall be taxable for a Closely-held Company under the head “Income from Other Sources” under Section 56(2)(viib) of the Income Tax Act, 1961 but…

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