This transaction is regarded as transfer

 

Fair market value of equity shares will be the full value of consideration in this case

 

Hence Capital gain will be imposed 2 times

  1. On Conversion of preference shares into equity shares
  2. On Sale of Equity Shares

 

Conversion of preference shares into equity shares  - Special Cases

 

Learn in your speed, with individual attention - Teachoo Maths 1-on-1 Class

Ask a doubt
CA Maninder Singh's photo - Co-founder, Teachoo

Made by

CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.