alleryStart learning →Shares bought below market value are taxed on?
AExcess over price, if above Rs 50,000
BHalf of the fair market value
CExcess over price, whatever its size
DFull fair market value of shares
Answer & Solution
Correct answer: A. Excess over price, if above Rs 50,000
For inadequate consideration, only the excess of fair market value over the price is taxed, and only if that excess exceeds fifty thousand rupees.
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