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Conversion of preference shares into equity shares

Last updated at May 29, 2023 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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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.