• Private limited companies rules relax 2013

Under Companies Act 2013 various rules has been relaxed my query asf
My son is Share Holders and Director in Private Limited Company he want to buy
Share held by his mother in another Private Limited Company. Whether it is 
allowed freely and some prior approval is required? or it it subject to some
cealing/cap/limit?
Rgds
arun kumar dhandhania
9892400809
Asked 7 years ago in Corporate Tax

Dear Sir,

You can surely buy shares of your mother in another company without any requirement.

Vishrut Rajesh Shah
CA, Ahmedabad
928 Answers
38 Consultations

5.0 on 5.0

He can do so. He has to disclose its interest in MBP-1 in the first meeting held immediately after such change.

Vidya Jain
CA, Kolkata
1008 Answers
58 Consultations

4.8 on 5.0

Dear Sir,

Your son can acquire share of her mother. He will have to just disclose his interest in MBP-1 in the first meeting held immediately after such change.

Please feel free to call/ revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hi Uncle,

1) Yes, Mother can transfer her shares to the son, if it allowed in the AOA of the company. She can transfer her share at any price she is willing to charge and that will be her income. and she is required to disclose in her return.

That company's Company secretary will do all the ROC filing requirement for transfer of shares.

There is no approval required to become a shareholder But yes , he needs to inform the company where he is already a director through MBP 1 that he is now interested in the said company.

2) Now there are very strict rules for the loan given to Director of the company. Section 185 prohibits any company from giving loans, guarantees and securities in favor of its directors or to any other person in whom the director is interested in.

3) As you have inherited the term deposit amount is not taxable but the interest amount on that term deposit will be taxable in your hand as income from other sources. and term deposit amount you will have to show under exempt income.

Vishakha Agarwal
CA, Bangalore
448 Answers
85 Consultations

5.0 on 5.0

Receiving short term deposit amount is capital receipt and you have to pay income tax on only interest portion.

Vidya Jain
CA, Kolkata
1008 Answers
58 Consultations

4.8 on 5.0

No approval required.

Vishrut Rajesh Shah
CA, Ahmedabad
928 Answers
38 Consultations

5.0 on 5.0

yes, it will calculated under capital gain. is she selling at the same price at what she has purchased then there will be no capital gain. and therefore no tax liabiliy.

As regarding your NRI friend case i dont have any idea.

Vishakha Agarwal
CA, Bangalore
448 Answers
85 Consultations

5.0 on 5.0

I think this query is specifically addressed to another expert.

B Vijaya Kumar
CA, Hyderabad
1001 Answers
124 Consultations

5.0 on 5.0

Hello Sir,

My professional colleagues have replied to most of your queries. However, to clarify the your wife will have to pay tax only on the gains ie profits arising out of such sale transaction.

Regards

Keerthiga Padmanabhan

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0

The query appears to be answered by other experts.

Feel free to get back if any question of yours was left unattended.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

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