FUND RAISING FUND RAISING FUND RAISING FUND RAISING

LUNAWAT & CO.

Chartered Accountants
LUNAWAT & CO.
Chartered Accountants
CA. PRAMOD JAIN
FCA, FCS, FCMA, MIMA, DISA
CA. PRAMOD JAIN
FCA, FCS, FCMA, MIMA, DISA
Funds
Capital Loans
Lunawat & Co.
CAPITAL CAPITAL CAPITAL CAPITAL
Public Public Public Public
Public Issue Public Issue Public Issue Public Issue
Private Placement Private Placement Private Placement Private Placement
Right Right Right Right
Bonus Bonus Bonus Bonus
Private Private Private Private
Private Placement Private Placement Private Placement Private Placement
Right Right Right Right
Bonus Bonus Bonus Bonus
Lunawat & Co.
Lunawat & Co.
Loans Loans Loans Loans
Debentures Debentures Debentures Debentures
Deposits Deposits Deposits Deposits
Loans Loans Loans Loans
PRIVATE PLACEMENT PRIVATE PLACEMENT PRIVATE PLACEMENT PRIVATE PLACEMENT
Special Resolution Special Resolution Special Resolution Special Resolution
MGT MGT MGT MGT - -- -14 (earlier 14 (earlier 14 (earlier 14 (earlier
offer should be offer should be offer should be offer should be
complete) complete) complete) complete)
Send letter of offer Send letter of offer Send letter of offer Send letter of offer
to persons from to persons from to persons from to persons from
whom money to be whom money to be whom money to be whom money to be
raised < 50 persons raised < 50 persons raised < 50 persons raised < 50 persons
> 200 per > 200 per > 200 per > 200 per yr yr yr yr
Send the detail of Send the detail of Send the detail of Send the detail of
persons to whom persons to whom persons to whom persons to whom
offer sent to ROC offer sent to ROC offer sent to ROC offer sent to ROC
within 30 days within 30 days within 30 days within 30 days
On receiving On receiving On receiving On receiving
amount, allot within amount, allot within amount, allot within amount, allot within
60 days 60 days 60 days 60 days
If not allotted refund If not allotted refund If not allotted refund If not allotted refund
within 15 days within 15 days within 15 days within 15 days
If not refunded pay If not refunded pay If not refunded pay If not refunded pay
intt intt intt intt @ 12% @ 12% @ 12% @ 12%
Lunawat & Co.
PRIVATE PLACEMENT PRIVATE PLACEMENT PRIVATE PLACEMENT PRIVATE PLACEMENT - -- - PROCEDURE PROCEDURE PROCEDURE PROCEDURE
Offer letter in PAS 4 + application form serial Offer letter in PAS 4 + application form serial Offer letter in PAS 4 + application form serial Offer letter in PAS 4 + application form serial
numbered + addressed to specific person numbered + addressed to specific person numbered + addressed to specific person numbered + addressed to specific person to be to be to be to be
sent in writing or electronic mode sent in writing or electronic mode sent in writing or electronic mode sent in writing or electronic mode
While passing special resolution While passing special resolution While passing special resolution While passing special resolution basis or basis or basis or basis or
justification of pricing (including premium) to be justification of pricing (including premium) to be justification of pricing (including premium) to be justification of pricing (including premium) to be
made in explanatory statement made in explanatory statement made in explanatory statement made in explanatory statement
Offer per person can not be for less than Offer per person can not be for less than Offer per person can not be for less than Offer per person can not be for less than Rs Rs Rs Rs. 20K . 20K . 20K . 20K
Payment to be made from bank A/c of person Payment to be made from bank A/c of person Payment to be made from bank A/c of person Payment to be made from bank A/c of person
subscribing subscribing subscribing subscribing
Company to keep record of such Bank A/c Company to keep record of such Bank A/c Company to keep record of such Bank A/c Company to keep record of such Bank A/c
To maintain complete record in PAS To maintain complete record in PAS To maintain complete record in PAS To maintain complete record in PAS 5 55 5 and PAS 4 and PAS 4 and PAS 4 and PAS 4
to be filed with ROC to be filed with ROC to be filed with ROC to be filed with ROC
Lunawat & Co.
PRIVATE PLACEMENT PRIVATE PLACEMENT PRIVATE PLACEMENT PRIVATE PLACEMENT OFFER LETTER OFFER LETTER OFFER LETTER OFFER LETTER
Business carried out by Co & subsidiaries Business carried out by Co & subsidiaries Business carried out by Co & subsidiaries Business carried out by Co & subsidiaries
Managements perception of risk factors Managements perception of risk factors Managements perception of risk factors Managements perception of risk factors
Details of default including interest Details of default including interest Details of default including interest Details of default including interest statutory dues, statutory dues, statutory dues, statutory dues,
deposit, loan, deposit, loan, deposit, loan, deposit, loan, etc etc etc etc
Time schedule for which offer is valid Time schedule for which offer is valid Time schedule for which offer is valid Time schedule for which offer is valid
Price of offer and its justification Price of offer and its justification Price of offer and its justification Price of offer and its justification
Name & Address of the Name & Address of the Name & Address of the Name & Address of the valuer valuer valuer valuer who did valuation who did valuation who did valuation who did valuation
Purpose and object of offer Purpose and object of offer Purpose and object of offer Purpose and object of offer
Contribution by promoters or directors Contribution by promoters or directors Contribution by promoters or directors Contribution by promoters or directors
Disclosure of interest of director, promoter or KMP Disclosure of interest of director, promoter or KMP Disclosure of interest of director, promoter or KMP Disclosure of interest of director, promoter or KMP
Details of litigation pending Details of litigation pending Details of litigation pending Details of litigation pending
Lunawat & Co.
PRIVATE PLACEMENT PRIVATE PLACEMENT PRIVATE PLACEMENT PRIVATE PLACEMENT OFFER LETTER OFFER LETTER OFFER LETTER OFFER LETTER
Remuneration of directors for current + last 3 Remuneration of directors for current + last 3 Remuneration of directors for current + last 3 Remuneration of directors for current + last 3
yrs yrs yrs yrs
Related party transaction for last 3 years Related party transaction for last 3 years Related party transaction for last 3 years Related party transaction for last 3 years
relating to loans, guarantee or securities relating to loans, guarantee or securities relating to loans, guarantee or securities relating to loans, guarantee or securities
Auditors Auditors Auditors Auditors reservations or qualifications or reservations or qualifications or reservations or qualifications or reservations or qualifications or
adverse remarks adverse remarks adverse remarks adverse remarks for last 5 years for last 5 years for last 5 years for last 5 years its impact its impact its impact its impact
on FS & corrective action taken / proposed for on FS & corrective action taken / proposed for on FS & corrective action taken / proposed for on FS & corrective action taken / proposed for
each comment each comment each comment each comment
Material frauds last 3 years Material frauds last 3 years Material frauds last 3 years Material frauds last 3 years
Lunawat & Co.
PRIVATE PLACEMENT PRIVATE PLACEMENT PRIVATE PLACEMENT PRIVATE PLACEMENT OFFER LETTER OFFER LETTER OFFER LETTER OFFER LETTER
Financial position Financial position Financial position Financial position
Capital structure before & after; Capital structure before & after; Capital structure before & after; Capital structure before & after;
Profit before & after tax for 3 years Profit before & after tax for 3 years Profit before & after tax for 3 years Profit before & after tax for 3 years
Dividend last 3 years Dividend last 3 years Dividend last 3 years Dividend last 3 years
Interest Interest Interest Interest coverage ratio for last three years (Cash coverage ratio for last three years (Cash coverage ratio for last three years (Cash coverage ratio for last three years (Cash
profit after tax plus interest paid/interest paid) profit after tax plus interest paid/interest paid) profit after tax plus interest paid/interest paid) profit after tax plus interest paid/interest paid)
Summary of financial position including Cash Flows Summary of financial position including Cash Flows Summary of financial position including Cash Flows Summary of financial position including Cash Flows
- -- - last 3 years last 3 years last 3 years last 3 years audited audited audited audited
Change in A/ Change in A/ Change in A/ Change in A/cing cing cing cing policies in last 3 years and its policies in last 3 years and its policies in last 3 years and its policies in last 3 years and its
effect on profits & Reserves effect on profits & Reserves effect on profits & Reserves effect on profits & Reserves
Declaration by director of compliance Declaration by director of compliance Declaration by director of compliance Declaration by director of compliance
Lunawat & Co.
PRIVATE PLACEMENT PRIVATE PLACEMENT PRIVATE PLACEMENT PRIVATE PLACEMENT - -- - CAUTION CAUTION CAUTION CAUTION
On allotment file PAS On allotment file PAS On allotment file PAS On allotment file PAS - -- -3 in 30 days, 3 in 30 days, 3 in 30 days, 3 in 30 days,
detail to include PAN & e detail to include PAN & e detail to include PAN & e detail to include PAN & e- -- -mail id mail id mail id mail id
Cannot be in cash Cannot be in cash Cannot be in cash Cannot be in cash
If not followed If not followed If not followed If not followed - -- - Penalty Penalty Penalty Penalty
Penalty of amount involved or 2 Cr, Penalty of amount involved or 2 Cr, Penalty of amount involved or 2 Cr, Penalty of amount involved or 2 Cr,
whichever is high whichever is high whichever is high whichever is high
+ to refund the money + to refund the money + to refund the money + to refund the money
Effective from 01.04.2014 Effective from 01.04.2014 Effective from 01.04.2014 Effective from 01.04.2014
Lunawat & Co.
SHARE CAPITAL & DEB SHARE CAPITAL & DEB SHARE CAPITAL & DEB SHARE CAPITAL & DEB
Share capital may be equity (with voting / Share capital may be equity (with voting / Share capital may be equity (with voting / Share capital may be equity (with voting /
differential rights to voting, dividend, differential rights to voting, dividend, differential rights to voting, dividend, differential rights to voting, dividend, etc etc etc etc ) or ) or ) or ) or
Preference Preference Preference Preference
Company cannot issue shares at a discount Company cannot issue shares at a discount Company cannot issue shares at a discount Company cannot issue shares at a discount
other than as sweat equity shares (53) other than as sweat equity shares (53) other than as sweat equity shares (53) other than as sweat equity shares (53)
A company may issue preference shares A company may issue preference shares A company may issue preference shares A company may issue preference shares
redeemable after 20 years for infrastructure redeemable after 20 years for infrastructure redeemable after 20 years for infrastructure redeemable after 20 years for infrastructure
projects projects projects projects
No company shall issue any Debentures No company shall issue any Debentures No company shall issue any Debentures No company shall issue any Debentures
carrying any voting rights carrying any voting rights carrying any voting rights carrying any voting rights
Lunawat & Co.
DEPOSITS DEPOSITS DEPOSITS DEPOSITS
Lunawat & Co.
DEPOSITS DEPOSITS DEPOSITS DEPOSITS
Following may invite, accept or renew Following may invite, accept or renew Following may invite, accept or renew Following may invite, accept or renew
deposits : deposits : deposits : deposits :
Banking companies Banking companies Banking companies Banking companies - -- - (RBI); (RBI); (RBI); (RBI);
Non Banking Financial Companies (NBFC) Non Banking Financial Companies (NBFC) Non Banking Financial Companies (NBFC) Non Banking Financial Companies (NBFC)
(RBI); (RBI); (RBI); (RBI);
Notified companies; Notified companies; Notified companies; Notified companies;
Public company having net worth > 100 Cr or Public company having net worth > 100 Cr or Public company having net worth > 100 Cr or Public company having net worth > 100 Cr or
turnover > 500 Cr (Rules) turnover > 500 Cr (Rules) turnover > 500 Cr (Rules) turnover > 500 Cr (Rules)
Others Others Others Others only from its members subject to only from its members subject to only from its members subject to only from its members subject to
certain conditions (73(2)). certain conditions (73(2)). certain conditions (73(2)). certain conditions (73(2)).
Lunawat & Co.
ACCEPTANCE OF DEPOSIT RULES 2014 ACCEPTANCE OF DEPOSIT RULES 2014 ACCEPTANCE OF DEPOSIT RULES 2014 ACCEPTANCE OF DEPOSIT RULES 2014
Apply to all companies except Bank, NBFC & HFC Apply to all companies except Bank, NBFC & HFC Apply to all companies except Bank, NBFC & HFC Apply to all companies except Bank, NBFC & HFC
Deposit includes receipt of money by way of loan, Deposit includes receipt of money by way of loan, Deposit includes receipt of money by way of loan, Deposit includes receipt of money by way of loan,
deposit or other form, but does not include: deposit or other form, but does not include: deposit or other form, but does not include: deposit or other form, but does not include:
Amount received from CG, SG, L Auth., Stat. Auth. Amount received from CG, SG, L Auth., Stat. Auth. Amount received from CG, SG, L Auth., Stat. Auth. Amount received from CG, SG, L Auth., Stat. Auth.
Amount from foreign Amount from foreign Amount from foreign Amount from foreign govt govt govt govt, bank, , bank, , bank, , bank, etc etc etc etc as per FEMA as per FEMA as per FEMA as per FEMA
Amount received from Banks, PFIs, CPs Amount received from Banks, PFIs, CPs Amount received from Banks, PFIs, CPs Amount received from Banks, PFIs, CPs
ICD ICD ICD ICD
Share appl. money, except not allotted/refunded Share appl. money, except not allotted/refunded Share appl. money, except not allotted/refunded Share appl. money, except not allotted/refunded
Amount received from director out of his own funds Amount received from director out of his own funds Amount received from director out of his own funds Amount received from director out of his own funds
Convertible bond / debenture Convertible bond / debenture Convertible bond / debenture Convertible bond / debenture shares within 5 years shares within 5 years shares within 5 years shares within 5 years
Interest free security deposit Interest free security deposit Interest free security deposit Interest free security deposit employee employee employee employee 1 1 1 1 yr yr yr yr salary salary salary salary
Lunawat & Co.
ACCEPTANCE OF DEPOSIT RULES ACCEPTANCE OF DEPOSIT RULES ACCEPTANCE OF DEPOSIT RULES ACCEPTANCE OF DEPOSIT RULES 2014 2014 2014 2014
Interest free amount received in Trust Interest free amount received in Trust Interest free amount received in Trust Interest free amount received in Trust
Business advances: Business advances: Business advances: Business advances:
Supply of goods / services Supply of goods / services Supply of goods / services Supply of goods / services within 365 days within 365 days within 365 days within 365 days
Against property Against property Against property Against property if adjusted as per agreement if adjusted as per agreement if adjusted as per agreement if adjusted as per agreement
S SS Security deposit for performance of contract for ecurity deposit for performance of contract for ecurity deposit for performance of contract for ecurity deposit for performance of contract for
supply of goods or provision of services supply of goods or provision of services supply of goods or provision of services supply of goods or provision of services
A AA Advance under long term projects or for supply of dvance under long term projects or for supply of dvance under long term projects or for supply of dvance under long term projects or for supply of
capital goods capital goods capital goods capital goods
If Co. accepting money does not have necessary If Co. accepting money does not have necessary If Co. accepting money does not have necessary If Co. accepting money does not have necessary
permission or approval to deal in goods or permission or approval to deal in goods or permission or approval to deal in goods or permission or approval to deal in goods or
properties or services properties or services properties or services properties or services - -- -Deposit Deposit Deposit Deposit
Lunawat & Co.
ACCEPTANCE OF DEPOSIT RULES ACCEPTANCE OF DEPOSIT RULES ACCEPTANCE OF DEPOSIT RULES ACCEPTANCE OF DEPOSIT RULES 2014 2014 2014 2014
Promoters Promoters Promoters Promoters - -- - stipulation of any FI or a banks: stipulation of any FI or a banks: stipulation of any FI or a banks: stipulation of any FI or a banks:- -- -
loan is brought in pursuance of the stipulation imposed by the loan is brought in pursuance of the stipulation imposed by the loan is brought in pursuance of the stipulation imposed by the loan is brought in pursuance of the stipulation imposed by the
lending institutions on the promoters to contribute such lending institutions on the promoters to contribute such lending institutions on the promoters to contribute such lending institutions on the promoters to contribute such
finance; and finance; and finance; and finance; and
loan is provided by the promoters themselves and/or by their loan is provided by the promoters themselves and/or by their loan is provided by the promoters themselves and/or by their loan is provided by the promoters themselves and/or by their
relatives. relatives. relatives. relatives.
Exemption available only till loans are repaid Exemption available only till loans are repaid Exemption available only till loans are repaid Exemption available only till loans are repaid
Amt. received by Amt. received by Amt. received by Amt. received by Nidhi Nidhi Nidhi Nidhi companies companies companies companies
Public / Eligible Public / Eligible Public / Eligible Public / Eligible deposit deposit deposit deposit 6 m to 36 m 6 m to 36 m 6 m to 36 m 6 m to 36 m
If <6, 3 months If <6, 3 months If <6, 3 months If <6, 3 months - -- - 10% of capital + free reserves 10% of capital + free reserves 10% of capital + free reserves 10% of capital + free reserves
Total deposit from members <25% of C + F. Reserve Total deposit from members <25% of C + F. Reserve Total deposit from members <25% of C + F. Reserve Total deposit from members <25% of C + F. Reserve
Rate of Rate of Rate of Rate of Intt Intt Intt Intt & commission not to exceed NBFC norms & commission not to exceed NBFC norms & commission not to exceed NBFC norms & commission not to exceed NBFC norms
Lunawat & Co.
EXISTING DEPOSITS EXISTING DEPOSITS EXISTING DEPOSITS EXISTING DEPOSITS
Prepare a list and file with ROC within 3 months from Prepare a list and file with ROC within 3 months from Prepare a list and file with ROC within 3 months from Prepare a list and file with ROC within 3 months from
1.4.2014 1.4.2014 1.4.2014 1.4.2014
Repay to the depositors within 1 year Repay to the depositors within 1 year Repay to the depositors within 1 year Repay to the depositors within 1 year
Non Non Non Non- -- -compliance: compliance: compliance: compliance:
amount amount amount amount to be repaid along with interest to be repaid along with interest to be repaid along with interest to be repaid along with interest
fine fine fine fine on Company on Company on Company on Company
minimum minimum minimum minimum Rs Rs Rs Rs. 1 . 1 . 1 . 1 Crore Crore Crore Crore, , , ,
Maximum Maximum Maximum Maximum Rs Rs Rs Rs. 10 . 10 . 10 . 10 crore crore crore crore
on on on on every officer in default every officer in default every officer in default every officer in default
imprisonment imprisonment imprisonment imprisonment upto upto upto upto 7 years or 7 years or 7 years or 7 years or
fine fine fine fine minimum minimum minimum minimum Rs Rs Rs Rs. 25000, . 25000, . 25000, . 25000,
maximum maximum maximum maximum Rs Rs Rs Rs. 25 L or . 25 L or . 25 L or . 25 L or both both both both
Lunawat & Co.
Lunawat & Co.
LOANS LOANS LOANS LOANS
Debentures, Debentures, Debentures, Debentures,
Bonds Bonds Bonds Bonds
Deposits Deposits Deposits Deposits
Other Other Other Other
than than than than
Deposit Deposit Deposit Deposit
ICD ICD ICD ICD Banks, FIs Banks, FIs Banks, FIs Banks, FIs
From From From From
Director Director Director Director
LOANS LOANS LOANS LOANS TAKING (179) TAKING (179) TAKING (179) TAKING (179)
Capital Capital Capital Capital - -- -1 L 1 L 1 L 1 L
Free Reserve Free Reserve Free Reserve Free Reserve
1 L 1 L 1 L 1 L
Existing Loan Existing Loan Existing Loan Existing Loan
1 L 1 L 1 L 1 L
New Loan New Loan New Loan New Loan
50 K 50 K 50 K 50 K
Board Board Board Board
Resolution Resolution Resolution Resolution - -- -
ROC ROC ROC ROC
Lunawat & Co.
LOANS LOANS LOANS LOANS TAKING TAKING TAKING TAKING (180) (180) (180) (180)
Lunawat & Co.
TAKING LOANS (180) TAKING LOANS (180) TAKING LOANS (180) TAKING LOANS (180)
For For For For s ss s. .. . 180 180 180 180, ,, , loans loans loans loans includes includes includes includes loans loans loans loans from from from from banks banks banks banks
too too too too
Temporary Temporary Temporary Temporary loans loans loans loans from from from from bankers bankers bankers bankers in in in in ordinary ordinary ordinary ordinary
course course course course of of of of business business business business not not not not included included included included in in in in limits limits limits limits
Temporary Temporary Temporary Temporary loans loans loans loans means means means means repayable repayable repayable repayable on on on on: :: :
Demand Demand Demand Demand
Within Within Within Within 6 66 6 months months months months
But But But But does does does does not not not not include include include include loan loan loan loan for for for for capital capital capital capital purpose purpose purpose purpose
Lunawat & Co.
PENALTY FOR DELAY IN FILING PENALTY FOR DELAY IN FILING PENALTY FOR DELAY IN FILING PENALTY FOR DELAY IN FILING
Delay Delay Delay Delay upto upto upto upto 270 270 270 270 days days days days 12 12 12 12 times times times times filing filing filing filing fee fee fee fee
After After After After 300 300 300 300 days days days days: :: :
On On On On company company company company fine fine fine fine Rs Rs Rs Rs. .. . 5 55 5 L LL L 25 25 25 25 L LL L; ;; ; and and and and
On On On On officer officer officer officer in in in in default default default default fine fine fine fine Rs Rs Rs Rs. .. . 1 11 1 L LL L 5 55 5 L LL L
Lunawat & Co.
ICD ICD ICD ICD
Can Can Can Can a aa a company company company company take take take take ICD? ICD? ICD? ICD?
What What What What if if if if the the the the company company company company from from from from whom whom whom whom you you you you take take take take
ICD ICD ICD ICD has has has has same same same same director director director director as as as as your your your your company? company? company? company?
What What What What if if if if the the the the company company company company from from from from whom whom whom whom you you you you take take take take
ICD ICD ICD ICD has has has has a aa a member member member member who who who who is is is is also also also also a aa a director director director director in in in in
your your your your company company company company? ?? ?
Penalty Penalty Penalty Penalty: :: :
On On On On company company company company who who who who gives gives gives gives F FF F Rs Rs Rs Rs. .. . 5 55 5 L LL L 25 25 25 25 L LL L; ;; ; and and and and
On On On On company company company company who who who who takes takes takes takes ICD ICD ICD ICD F FF F- -- - Rs Rs Rs Rs. .. . 5 55 5 L LL L 25 25 25 25 L LL L
Lunawat & Co.
SHARE CAPITAL AND INCOME TAX SHARE CAPITAL AND INCOME TAX SHARE CAPITAL AND INCOME TAX SHARE CAPITAL AND INCOME TAX
Section 68 Section 68 Section 68 Section 68
Section 115BBE Section 115BBE Section 115BBE Section 115BBE
Section 56(1)(vii)(c) Section 56(1)(vii)(c) Section 56(1)(vii)(c) Section 56(1)(vii)(c) Individual / HUF Individual / HUF Individual / HUF Individual / HUF
Section 56(1)( Section 56(1)( Section 56(1)( Section 56(1)(viia viia viia viia) ) ) ) Firm or Company Firm or Company Firm or Company Firm or Company
Section 56(1)( Section 56(1)( Section 56(1)( Section 56(1)(viib viib viib viib) ) ) ) Company Company Company Company
Lunawat & Co.
SECTION 68 SECTION 68 SECTION 68 SECTION 68
Source of source to be proved Source of source to be proved Source of source to be proved Source of source to be proved w.e.f w.e.f w.e.f w.e.f. . . .
1.4.2013. Not applicable to: 1.4.2013. Not applicable to: 1.4.2013. Not applicable to: 1.4.2013. Not applicable to:
Co. in which public are substantially interested Co. in which public are substantially interested Co. in which public are substantially interested Co. in which public are substantially interested
Application received from Venture capital co. or Application received from Venture capital co. or Application received from Venture capital co. or Application received from Venture capital co. or
fund fund fund fund
Sum credited may be: Sum credited may be: Sum credited may be: Sum credited may be:
Share application money Share application money Share application money Share application money
Share capital Share capital Share capital Share capital
Share premium Share premium Share premium Share premium
Any such amount by whatever name called Any such amount by whatever name called Any such amount by whatever name called Any such amount by whatever name called
Lunawat & Co.
SECTION 68 SECTION 68 SECTION 68 SECTION 68
Application for Debentures?? Application for Debentures?? Application for Debentures?? Application for Debentures??
Received from Indian company?? Received from Indian company?? Received from Indian company?? Received from Indian company??
Received from Foreign Company?? Received from Foreign Company?? Received from Foreign Company?? Received from Foreign Company??
Received from Non Received from Non Received from Non Received from Non- -- -resident Indian?? resident Indian?? resident Indian?? resident Indian??
Received from Foreign Citizen?? Received from Foreign Citizen?? Received from Foreign Citizen?? Received from Foreign Citizen??
Lunawat & Co.
SECTION 115BBE SECTION 115BBE SECTION 115BBE SECTION 115BBE
If assessed u/s 68 / 69 / 69A / 69B / If assessed u/s 68 / 69 / 69A / 69B / If assessed u/s 68 / 69 / 69A / 69B / If assessed u/s 68 / 69 / 69A / 69B /
69C / 69D 69C / 69D 69C / 69D 69C / 69D rate of tax rate of tax rate of tax rate of tax 30% on such 30% on such 30% on such 30% on such
income income income income
No expenditure allowed from such No expenditure allowed from such No expenditure allowed from such No expenditure allowed from such
income income income income
No allowances allowed from such income No allowances allowed from such income No allowances allowed from such income No allowances allowed from such income
Deduction u/c VIA??? Deduction u/c VIA??? Deduction u/c VIA??? Deduction u/c VIA???
Lunawat & Co.
SECTION 56(1)( SECTION 56(1)( SECTION 56(1)( SECTION 56(1)(vii)(c) vii)(c) vii)(c) vii)(c)
Applicable only to individual and HUF Applicable only to individual and HUF Applicable only to individual and HUF Applicable only to individual and HUF
Mr. A Mr. A Mr. A Mr. A buy Shares of listed Co for 5 L buy Shares of listed Co for 5 L buy Shares of listed Co for 5 L buy Shares of listed Co for 5 L from Mr. B from Mr. B from Mr. B from Mr. B
(FMV (FMV (FMV (FMV 5.5 L 5.5 L 5.5 L 5.5 L). Is 56 (1) (vii) (c) applicable? ). Is 56 (1) (vii) (c) applicable? ). Is 56 (1) (vii) (c) applicable? ). Is 56 (1) (vii) (c) applicable?
Mr. X Mr. X Mr. X Mr. X buy Shares of listed Co for buy Shares of listed Co for buy Shares of listed Co for buy Shares of listed Co for 2 2 2 2 L from L from L from L from Mr. B Mr. B Mr. B Mr. B
(FMV (FMV (FMV (FMV 2.5 2.5 2.5 2.5 L LL L) & for ) & for ) & for ) & for Rs Rs Rs Rs. 3 L from C (FMV 3.25 L).? . 3 L from C (FMV 3.25 L).? . 3 L from C (FMV 3.25 L).? . 3 L from C (FMV 3.25 L).?
Mr. M to plan his taxation sells shares of Mr. M to plan his taxation sells shares of Mr. M to plan his taxation sells shares of Mr. M to plan his taxation sells shares of
Reliance Industries to Mrs. M for Reliance Industries to Mrs. M for Reliance Industries to Mrs. M for Reliance Industries to Mrs. M for Rs Rs Rs Rs. 1 L (FMV . 1 L (FMV . 1 L (FMV . 1 L (FMV
2 L)?? 2 L)?? 2 L)?? 2 L)??
Mr. P buys redeemable debentures of ABC Pvt. Mr. P buys redeemable debentures of ABC Pvt. Mr. P buys redeemable debentures of ABC Pvt. Mr. P buys redeemable debentures of ABC Pvt.
Ltd. having FV Ltd. having FV Ltd. having FV Ltd. having FV Rs Rs Rs Rs. 5 L from Mr. Q for . 5 L from Mr. Q for . 5 L from Mr. Q for . 5 L from Mr. Q for Rs Rs Rs Rs. 4 L?? . 4 L?? . 4 L?? . 4 L??
Lunawat & Co.
SECTION 56(1 SECTION 56(1 SECTION 56(1 SECTION 56(1)( )( )( )(viia viia viia viia) )) )
Applicable only to a Firm, LLP and Company Applicable only to a Firm, LLP and Company Applicable only to a Firm, LLP and Company Applicable only to a Firm, LLP and Company
Applicable on Applicable on Applicable on Applicable on receipt of shares at price in receipt of shares at price in receipt of shares at price in receipt of shares at price in
excess > 50k of fair excess > 50k of fair excess > 50k of fair excess > 50k of fair value of value of value of value of shares shares shares shares
XYZ P. XYZ P. XYZ P. XYZ P. Ltds Ltds Ltds Ltds shares FMV is shares FMV is shares FMV is shares FMV is Rs Rs Rs Rs. 50 per share. It . 50 per share. It . 50 per share. It . 50 per share. It
allots 1 L shares @ allots 1 L shares @ allots 1 L shares @ allots 1 L shares @ Rs Rs Rs Rs. 10/ . 10/ . 10/ . 10/- -- - to its promoter?? to its promoter?? to its promoter?? to its promoter??
ABC P. ABC P. ABC P. ABC P. Ltds Ltds Ltds Ltds shares FMV is shares FMV is shares FMV is shares FMV is Rs Rs Rs Rs. 100/ . 100/ . 100/ . 100/- -- - its its its its
issues bonus shares in ratio of 1:1?? issues bonus shares in ratio of 1:1?? issues bonus shares in ratio of 1:1?? issues bonus shares in ratio of 1:1??
ABC P. Ltd ABC P. Ltd ABC P. Ltd ABC P. Ltd buys buys buys buys convertible convertible convertible convertible debentures of debentures of debentures of debentures of
XYZ. XYZ. XYZ. XYZ. Ltd. having FV Ltd. having FV Ltd. having FV Ltd. having FV Rs Rs Rs Rs. 5 L from Mr. Q for . 5 L from Mr. Q for . 5 L from Mr. Q for . 5 L from Mr. Q for Rs Rs Rs Rs. . . .
4 L 4 L 4 L 4 L?? ?? ?? ??
Lunawat & Co.
SECTION 56(1 SECTION 56(1 SECTION 56(1 SECTION 56(1)( )( )( )(viib viib viib viib) )) )
Applicable only to a Company Applicable only to a Company Applicable only to a Company Applicable only to a Company
Applicable on consideration received on Applicable on consideration received on Applicable on consideration received on Applicable on consideration received on
issue of shares at premium issue of shares at premium issue of shares at premium issue of shares at premium consideration consideration consideration consideration
received in excess of FMV of shares is received in excess of FMV of shares is received in excess of FMV of shares is received in excess of FMV of shares is
income income income income
Not applicable to: Not applicable to: Not applicable to: Not applicable to:
Co. in which public are substantially interested Co. in which public are substantially interested Co. in which public are substantially interested Co. in which public are substantially interested
Amount Amount Amount Amount received from Venture capital co. or received from Venture capital co. or received from Venture capital co. or received from Venture capital co. or fund fund fund fund
Lunawat & Co.
SECTION 56(1)( SECTION 56(1)( SECTION 56(1)( SECTION 56(1)(viib viib viib viib) )) )
Is issue of Debentures covered ?? Is issue of Debentures covered ?? Is issue of Debentures covered ?? Is issue of Debentures covered ??
XYZ P. XYZ P. XYZ P. XYZ P. Ltds Ltds Ltds Ltds shares FMV is shares FMV is shares FMV is shares FMV is Rs Rs Rs Rs. . . . 20 20 20 20 per per per per
share. It allots share. It allots share. It allots share. It allots the following: the following: the following: the following:
1 1 1 1 L shares @ L shares @ L shares @ L shares @ Rs Rs Rs Rs. . . . 50 50 50 50/ // /- -- - to to to to ABC P. Ltd.?? ABC P. Ltd.?? ABC P. Ltd.?? ABC P. Ltd.??
2 L shares @ 100/ 2 L shares @ 100/ 2 L shares @ 100/ 2 L shares @ 100/- -- - to to to to Foreign Company?? Foreign Company?? Foreign Company?? Foreign Company??
1 L shares @ 80/ 1 L shares @ 80/ 1 L shares @ 80/ 1 L shares @ 80/- -- - to Non to Non to Non to Non- -- -resident Indian?? resident Indian?? resident Indian?? resident Indian??
1 L share @ 90/ 1 L share @ 90/ 1 L share @ 90/ 1 L share @ 90/- -- - to Foreign Citizen?? to Foreign Citizen?? to Foreign Citizen?? to Foreign Citizen??
ABC P. Ltd. after incorporation gets its ABC P. Ltd. after incorporation gets its ABC P. Ltd. after incorporation gets its ABC P. Ltd. after incorporation gets its
shares valued @ 500/ shares valued @ 500/ shares valued @ 500/ shares valued @ 500/- -- - based on intangible based on intangible based on intangible based on intangible
asset it acquired & allots shares @ 450/ asset it acquired & allots shares @ 450/ asset it acquired & allots shares @ 450/ asset it acquired & allots shares @ 450/- -- - ? ? ? ?
Lunawat & Co.
Lunawat & Co.
CA. Pramod Jain CA. Pramod Jain CA. Pramod Jain CA. Pramod Jain
pramodjain@lunawat.com pramodjain@lunawat.com pramodjain@lunawat.com pramodjain@lunawat.com
+91 9811073867 +91 9811073867 +91 9811073867 +91 9811073867
2014 CA. Pramod Jain, Lunawat & Co