Rohit AgrawalRohit Agrawal asked 5 months ago
3 Answers
RaviRavi Staff answered 5 months ago

23 ABC Pvt. Ltd. was XYZ Pvt. Ltd. are the Companies in which public are not substantially interested. During the previous year 2018-19, ABC Pvt. Ltd. received some property being shares of XYZ Pvt. Ltd. The details of which are provided below: No. of shares 1000 Face Value ₹10 per share Aggregate Fair Market Value ₹1,00,000 Consideration Value Nil As the tax auditor how would you deal with the situation? (a) Reporting required under Clause 28 being the transaction results into income taxable u/s 56(2)(viia). (b) Reporting required under Clause 29 being the transaction results into income taxable u/s 56(2)(viib). (c) Reporting required under Clause 29A being the transaction results into income taxable u/s 56(2)(ix). (d) Reporting required under Clause 29B being the transaction results into income taxable u/s 56(2)(x).
Answer “d” is correct earlier it was clause 28, after amendment it is clause 29B

Rohit AgrawalRohit Agrawal answered 5 months ago

sir clause 28 and 29 are bit confusing can u please elaborate the difference between the 2

RaviRavi Staff answered 5 months ago

in clause 28 shares are received without any consideration
in clause 29 shares are issued for price more than fair value
but not cases of clause 28 will be covered in clause 29B

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