Valuation Requirement under Income Tax

As per Section 56(2)(viib), where a private company receives, in any previous year, from any person being a resident, any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value (FMV) of the shares shall be chargeable to income tax under income from other sources. Read article: https://www.proxcel.in/blog/valuation-requirement-under-income-tax/