Tag Archives: Issuing

Income Tax Scare For Startups For Issuing Preference Shares At A Premium Over Fair Market Value; Tax Experts Also Under Scanner For Valuation Of Startups

In a tax scare for startups, the Income Tax department has sent notices to startups and unlisted subsidiaries of some major Indian companies and multinationals for raising funds through preference shares in excess of what it considers the fair market value. The department has sent notices to about 200 entities under Section 56(2)(vii)(b) of the Income Tax Act, 1961, in ... Read More »