Income Tax Press Release || CBDT Proposes Changes to Rule 11UA in respect of ANGEL Tax – Also Proposes to Notify Excluded Entities

In the Finance Act, 2023 an amendment has been introduced to bring the consideration received from non-residents for the issue of shares within the ambit of Section 56(2)(viib) of the Income-tax Act, 1961 which provides that if such consideration for issue of shares exceeds the Fair Market Value (FMV) of the shares, it shall be chargeable to Income Tax under the head ‘Income from other sources’.

Subsequent to this amendment, detailed interactions have been held with stakeholders. Based on the Inputs, Rule 11UA for the valuation of shares for the purposes of Section 56(2)(viib) of the Act is proposed to be modified and notification of entities to which the said provision shall not apply is also being issued separately.

The Press Release can be accessed at Click Here

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *