Conversion of preference shares into equity shares

Last updated at August 14, 2026 by

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

 

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