Assessment, Gift

Company Can Receive Gifts Other Than Share Without Any Tax Implication !

Posted on by Prashant Thakur

A company raises funds primarily by issue of shares or accepting  loans  from various parties. When a private limited or closely held company issues shares , it has a risk of taxation of the amount of premium which is more than the  fair market value  of the shares. If the company receives loan from parties, then again the tax problem of so called "unexplained cash credit" erupts if unfortunately your case is selected for scrutiny. This post is specially meant for the private limited companies who desires to raise funds from

  1. Individuals who are related to major share holders of company .
  2. Other closely held companies

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Prashant Thakur

The author has spent twenty years with Income Tax department and desire to service common citizen of India which include professionals like tax practioners ,CA,ICMA, CS and tax lawyers by advising them on the direct tax matters for a very affordable fee.

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