CBDT notifies that consideration received by a company for issue of shares that exceeds the face value will be exempted from tax

Mar 06, 2019 | by Avantis RegTech Legal Research Team


The Central Board of Direct Taxes (CBDT) on March 05, 2019, has issued a Notification to notify that the provisions of Section 56(2)(viib) will not apply to consideration received by a company for issue of shares that exceeds the face value of such shares, if the said consideration has been received from a person, being a resident, by a company which fulfils the conditions specified in Para 4 of the Notification dated February 19, 2019.

This Notification will be deemed to have come into force retrospectively from February 19, 2019.


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