Chartered Accountant
Chartered Accountant
The Finance Act, 2024 has introduced notable changes to the valuation requirements for private limited companies, by proposing removal of Section 56(2)(viib) of the Income Tax Act with effect from 1st April, 2025. This section imposes tax on shares issued by private limited companies at a price exceeding the Fair Market Value (FMV). This taxation …
The Central Board of Direct Taxes (CBDT) has introduced a significant revision to Rule 11UA of the Income Tax Rules, 1962 pertaining to the valuation of shares during issuance with effect from 25th September, 2023. In this communication, we present an overview of the updated valuation methodology, which is of particular relevance to Chartered Accountants …
Introduction:Vide Finance Act, 2023, the Indian Government has expanded the scope of section 56(2)(viib) of the Income-tax Act, 1961 to include non-resident investors (commonly referred to as Angel tax). This amendment will take effect from April 1, 2024. According to this provision, if a company receives an amount for share issuance that exceeds the Fair …