INCOME TAX AMENDMENTS Basic Concept W.e.f. A.Y. 13-14, (viib) any consideration received for issue of shares, as exceed the Fair Market Value of the shares referred u/s 56(2) (viib) shall be treated as income. Demerger [Sec.2(19AA)] Resulting company issues its shares to the shareholders of the demerged company on a proportionate basis. W.e.f. A.Y.13-14, above condition is not applicable where resulting company itself is the shareholder of the demerged company. The requirement of issuing shares will still have to be met by the resulting company in case of other shareholders of the demerged company. Shareholders holding not less than 75% Surcharge: No surcharge. Education cess: 2% Secondary and Higher Education cess: 1% Residential Status: Property income [Sec. (9)(1)(i)] To supersede the decision of the Supreme court of Vodafone International Holdings B.V. following amendment has been inserted:The expression through shall mean and include and shall be deemed to have always meant and included by means of in consequence of or by reason of Explanation 5, for the removal of doubts, it is hereby clarified that an asset or a capital asset being any share or interest in a company or entity registered or incorporated outside India shall be deemed to be and shall always be deemed to have been situated in India, if the share or interest derives, directly or indirectly, its value substantially from the assets located in India. Keep Learning... Keep Enjoying...
Posted on: Mon, 29 Jul 2013 12:49:33 +0000
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