A.Sinha & Associates, Advocates

The Finance Act, 2017 has provided for insertion of a new Section 50CA to the Income Tax Act, 1961 pertaining to valuation of shares of “unquoted shares” as a “Special Provision” to be effective from 01-04-2018.  The provision is similar in line to Section 50C of the Income Tax Act pertaining to computation of capital gains arising out of transfer of land and/or building and the consequential income tax liability accruing from such transfer.  Section 50C Section 50C inter-alia provides as follows: “Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed or assessable by any authority of a State Government (hereafter in this section referred to as the "stamp valuation authority") for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed or assessable shall, for the purposes of section 48, b...

Government of India has enacted the Real Estate (Regulation and Development) Act 2016 and all the sections of the Act shall come into force with effect from May 1, 2017. The key objectives of the Act are: i).Ensuring Transparency & Efficiency in real estate sector in regards to sale of plot, apartment, building or real estate project; ii).Protecting the interest of consumers in real estate sector; iii).Establishing adjudicating mechanism for speedy dispute redressal; iv). Establishing Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority. With increasing complaints against the promoters, the Real Estate Regulatory Act notification by the Government of India has led to multiple guidelines which the promoters have to meet so as to legally build a project or sell it.  RERA has brought some milestone changes regarding the laws in real estate sector of India. The wholehearted commitment of the gov...

The Ministry of Corporate Affairs  vide  its notification dated 13th April, 2017 has notified relevant rules of merger between Indian and Foreign Companies (‘Cross Border Mergers’) and has also notified 13th April 2017 as the effective date of come into force of Section 234 of the Companies Act 2013 pertaining to Cross Border Mergers. PART I: COMPANIES ACT 2013 & RULES Rules pertaining to domestic demergers being the  Companies (Compromises, Arrangements and Amalgamations) Rules, 2016  have been notified in 14th December 2016 and now rules pertaining to Cross Border Mergers have been notifed by way of an amendment to the Said Rules by incorporation a new Rule 25A to deal with Corss Border Mergers. The text of the Rule is as follows:   “25A. Merger or amalgamation of a foreign company with a Company and vice versa. —(1) A foreign company incorporated outside India may merge with an Indian company [after obtaining prior approval of Reserve...