Tax on share premium Remedy for money laundering or a startup bottleneck

Bar & Bench May 3 2012

Startup capital in closely held companies from residents and exceeding the ‘fair market value’, may now stand taxed at the highest tax rate of 30%. Amongst the various debatable and not so welcome amendments proposed by the Finance Bill, 2012, the proposed amendment to section 56 of the Income Tax Act, 1961 too deserves a special mention. In this columns, Archana Panchal and Tushar Ajinkya discusses the same.

By Archana Panchal and Tushar Ajinkya

Startup capital in closely held companies from residents and exceeding the ‘fair market value’, may now stand taxed at the highest tax rate of . . .

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