Where a firm or closely held company received from any person any property being shares of closely held company without consideration :

CS Executive · Tax Laws and Practice · PYQS · June 2017
Where a firm or closely held company received from any person any property being shares of closely held company without consideration :
(A) the whole of the fair market value of the shares shall be taxable
(B) the whole of the FMV shall be taxable if it exceeds ₹ 50,000
(C) the whole of FMV shall be exempt
(D) the whole of the cost of such shares shall be exempt

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Income Tax

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