XYZ Pvt. Ltd. had distributed income of ₹9,00,000 to Rajesh for the reason of buyback of its shares from him on 1st March, 2018. These shares were purchased by him for ₹5,00,000 on 1st March, 2012. The income out of the

CS Executive · Tax Laws and Practice · PYQS · December 2018
XYZ Pvt. Ltd. had distributed income of ₹9,00,000 to Rajesh for the reason of buyback of its shares from him on 1st March, 2018. These shares were purchased by him for ₹5,00,000 on 1st March, 2012. The income out of the amount received by Rajesh against the buyback of shares from the company XYZ Pvt. Ltd. shall be subject to tax in A.Y. 2018-19 shall be of ..........
(A) ₹4 lakh
(B) ₹9 lakh
(C) Nil being exempt u/s 10 (34A) of Act
(D) None of the above

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Income Tax Act, 1961

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