Agni (P) Ltd. issued equity shares of ₹ 10 each at ₹ 40 per share. The fair market value of the share on the date of issue was ascertained as ₹ 25 per share. The company issued 1,00,000 equity shares. The amount liable to tax in the hands of the company would be:
A. ₹ 15,00,000
B. ₹ 30,00,000
C. Nil
D. ₹ 40,00,000
Answer:A
Agni (P) Ltd. issued equity shares of ₹ 10 each at ₹ 40 per share. The fair market value of the share on the date of issue was ascertained as ₹ 25 per share. The company issued 1,00,000 equity shares. The amount liable to tax in the hands of the company would be:
A. ₹ 15,00,000 B. ₹ 30,00,000 C. Nil D. ₹ 40,00,000