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Question ID : 42234

Income Tax on Share Premium in the hands of a company

What will be Tax Rate on Share Premium in the hands of a private limited company taken beyond FMV of shares ?

Posted by Gaurav Kumar Baranwal on Mar 12, 2022

Filed Under DIRECT TAXES

Answer ID : 81435

1) 30% /25% per Finance Bill Part-1, Para E (1) / (ii) OR 2) 25%, 22%,15%/22% per section 115BA, 115BAA, 115BAB depending on date of set up of business/ Nature of business as the case may be.

Posted by B.CHACKRAPANI WARRIER on Mar 14, 2022
Answer ID : 81452

It will be treated as other income and taxed at the applicable rate ranging from 30% to the other applicable rates, if tax rate is lower than 30%.

Posted by CA. JHA SHANKAR KUMAR on Mar 31, 2022