Sec. 2(19)AA(iv): To qualify as demerger one of
the conditions is that the resulting company, as consideration for
demerger, issues its shares to the shareholder of the demerged
company in proportionate basis. An amendment is to be made w.e.f
1st April, 2013, which provides that where the resulting company
itself is the shareholder of the demerged company, there is no need
to issue shares. Therefore, it shall not be necessary for the
resulting company to issue shares to itself.
Transactions not regarded as transfer: Sec. 47(vii)(a)
Under the current provision, in order for a merger to qualify as
a tax free merger, it is required that shares have to be issued by
the resulting entity to the shareholders of the merging entity. A
proposed amendment to the current Sec. 47(vii) states that if the
amalgamated company is itself the shareholder of the amalgamating
company, then there is no requirement for the amalgamated company
to issue shares to itself.
INCOME FROM OTHER SOURCES :Sec. 56(2)
Sec. 56(2)(vii): The current provisions provide
that where an individual or a HUF receives a sum or asset, without
consideration, the value of which exceeds Rs.50,000/- then such sum
shall be treated as income from other sources and taxable in the
hands of the donee.
However, there is an exception where the sum or asset is gifted
by a relative of the individual or HUF, as defined by the said
section. The meaning of relative‟ has been extended by a
proposed amendment whereby individual member of the HUF will be
included within the ambit of relative of the receiving HUF.
Therefore, if a member gives a gift to the HUF there shall be no
tax on such gift under the head income from other sources. However,
if the HUF makes a gift to the individual the same shall not be tax
exempt as an HUF will not be treated as a relative of its
Share premium in excess of FMV of share treated as Income from
Sec. 56(2)(viib):A key tax proposal relating to
curbing tax avoidance has been made in relation to issue of shares
in excess of the fair value by closely held companies. Share
premium received by private company or unlisted Company over the
"fair market value" on subscription of shares is proposed
to be taxable as income from other sources in the hands of the
However, there is an exception for consideration for issue of
shares received by a venture capital undertaking from a venture
capital company or fund.
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The Hon'ble High Court of Bombay has held that where a Scheme of Amalgamation is executed between two companies registered in two different states [...], then the said two orders are two independent instruments.
The Ministry of Corporate Affairs notified on June 5, 2015 that certain provisions of the Companies Act, 2013 shall not apply to private limited companies or shall apply with such exceptions or modifications as directed in the notification.
Whilst trade and barter have existed since early times, the modern practice of forming business relationships through the means of contract has come into existence only since the industrial revolution in the West.
The Supreme Court in Central Bureau of Investigation, Bank Securities and Fraud Cell and Others v. Ramesh Gelli and Others has held officers of private banks to be public servants under Prevention of Corruption Act, 1988.
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