EU-GDPR Comes Into Effect
The European Union-General Data Protection Regulations (“GDPR”) came into effect from May 25, 2018 onwards across the world. GDPR will be effective for everyone whosoever is generating, monitoring, processing or controlling any European Union data.
Indian information technology businesses engaging with European clients have access to a variety of data, including personal data. This brings Indian enterprises under the ambit of the GPDR and makes it mandatory for them to implement data privacy and security frameworks compliant with the specific requirements of GDPR.
CBDT Notification on Taxability of Shares Issued at Higher Than Fair Market Value
The Central Board of Direct Taxes issued a notification on May 24, 2018 regarding the tax on issue of shares at more than fair market value. The notification deals with Section 56(2)(viib) of the Income Tax Act, 1961 (“IT Act”) which provides that where a closely held company issues its shares at a price which is more than its fair market value then the amount received in excess of fair market value of shares will be charged to tax in the hand of the company as income from other source. This notification states that the provisions of the abovementioned Section 56(2)(viib) of the IT Act will not apply to consideration received by a company for issue of shares that exceeds the face value of such shares, if such consideration has been received in accordance with the approval granted by the Inter-Ministerial Board of Certification under Clause (i) of para 4(3) of this notification issued by Department of Industrial Policy and Promotion on April 11, 2018. It was also stated that the notification will be deemed to be in force retrospectively from April 11, 2018.