Comfort (Pvt.) Ltd. issued 10,000 equity shares to Pawan at ₹ 18 per share when the fair market value of each share was determined at ₹ 11 per share. The tax implication of the transaction is –
A. ₹ 70, 000 taxable as income for Comfort (Pvt.) Ltd.
B. ₹ 20,000 taxable as income for Pawan
C. ₹ 10,000 taxable as income for Pawan
D. Nil
Answer:A
Comfort (Pvt.) Ltd. issued 10,000 equity shares to Pawan at ₹ 18 per share when the fair market value of each share was determined at ₹ 11 per share. The tax implication of the transaction is –
A. ₹ 70, 000 taxable as income for Comfort (Pvt.) Ltd. B. ₹ 20,000 taxable as income for Pawan C. ₹ 10,000 taxable as income for Pawan D. Nil