No Gift Tax on Security Premium in Case of Right Issue
1. The tax office says the issue of shares to existing shareholder @ face value is not allowed 2. Mumbai Tribunal in Sudhir Menon HUF case held that in case of proportionate allotment of shares, there would be no taxability u/s 56(2)(vii)(c)(ii) 3. This is because the gain accruing on the allotment of fresh shares will…