web analytics

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

 

  1. Income Tax
  2. Income from Capital Gains
Ask Download

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
Jail