In the Finance Act, 2023, an amendment has been introduced to bring the consideration received from non-residents for the issue of shares under section 56(2)(viib) of the Income-tax Act, 1961(the Act). According to this provision, if the consideration for issuing shares exceeds their Fair Market Value (FMV), it will be taxable as ‘Income from other sources’.
Tax-Update-Proposed-changes-in-Rule-11UA