Income Tax Act, 2025
Section 3: Ins. by Act 7 of 2017, s. 29 (w.e.f. 12017).
3. Ins. by Act 7 of 2017, s. 29 (w.e.f. 12017).
307
1[(viib) where a company, not being a company in which the public are substantially
interested, 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 of the shares:
Provided that this clause shall not apply where the consideration for issue of shares is
received—
(i) by a venture capital undertaking from a venture capital company or a venture capital
fund; or
(ii) by a company from a class or classes of persons as may be notified by the Central
Government in this behalf.
Explanation.—For the purposes of this clause,—
(a) the fair market value of the shares shall be the value—
(i) as may be determined in accordance with such method as may be prescribed; or
(ii) as may be substantiated by the company to the satisfaction of the Assessing Officer, based
on the value, on the date of issue of shares, of its assets, including intangible assets being
goodwill, know-how, patents, copyrights, trademarks, licences, franchises or any other business
or commercial rights of similar nature,
whichever is higher;
(b) “venture capital company”, “venture capital fund” and “venture capital undertaking” shall
have the meanings respectively assigned to them in clause (a), clause (b) and clause (c)
of 2[Explanation] to clause (23FB) of section 10;]
3[(viii) income by way of interest received on compensation or on enhanced compensation
referred to in clause (b) of section 145A;]
4[(ix) any sum of money received as an advance or otherwise in the course of negotiations for
transfer of a capital asset, if,—
(a) such sum is forfeited; and
(b) the negotiations do not result in transfer of such capital asset.]
5[(x) where any person receives, in any previous year, from any person or persons on or after
the 1st day of April, 2017,—
(a) any sum of money, without consideration, the aggregate value of which exceeds fifty
thousand rupees, the whole of the aggregate value of such sum;
(b) any immovable property,—
(A) without consideration, the stamp duty value of which exceeds fifty thousand
rupees, the stamp duty value of such property;
6[(B) for a consideration, the stamp duty value of such property as exceeds such
consideration, if the amount of such excess is more than the higher of the following
amounts, namely:––
(i) the amount of fifty thousand rupees; and
(ii) the amount equal to five per cent. of the consideration:]
Provided that where the date of agreement fixing the amount of consideration for
the transfer of immovable property and the date of registration are not the same, the
stamp duty value on the date of agreement may be taken for the purposes of this
sub-clause:
where a company, not being a company in which the public are substantially
interested, 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 of the shares:
Provided that this clause shall not apply where the consideration for issue of shares is
received—
by a venture capital undertaking from a venture capital company or a venture capital
fund; or
by a company from a class or classes of persons as may be notified by the Central
Government in this behalf.
Explanation.—For the purposes of this clause,—
the fair market value of the shares shall be the value—
as may be determined in accordance with such method as may be prescribed; or
as may be substantiated by the company to the satisfaction of the Assessing Officer, based
on the value, on the date of issue of shares, of its assets, including intangible assets being
goodwill, know-how, patents, copyrights, trademarks, licences, franchises or any other business
or commercial rights of similar nature,
whichever is higher;
“venture capital company”, “venture capital fund” and “venture capital undertaking” shall
have the meanings respectively assigned to them in clause
and clause
of 2[Explanation] to clause
of section 10;]
3[
income by way of interest received on compensation or on enhanced compensation
referred to in clause
of section 145A;]
4[
any sum of money received as an advance or otherwise in the course of negotiations for
transfer of a capital asset, if,—
such sum is forfeited; and
the negotiations do not result in transfer of such capital asset.]
5[
where any person receives, in any previous year, from any person or persons on or after
the 1st day of April, 2017,—
any sum of money, without consideration, the aggregate value of which exceeds fifty
thousand rupees, the whole of the aggregate value of such sum;
any immovable property,—
without consideration, the stamp duty value of which exceeds fifty thousand
rupees, the stamp duty value of such property;
6[
for a consideration, the stamp duty value of such property as exceeds such
consideration, if the amount of such excess is more than the higher of the following
amounts, namely:––
the amount of fifty thousand rupees; and
the amount equal to five per cent. of the consideration:]
Provided that where the date of agreement fixing the amount of consideration for
the transfer of immovable property and the date of registration are not the same, the
stamp duty value on the date of agreement may be taken for the purposes of this
sub-clause: