TMI BlogReduction of share capital [Sec. 2(22)(d)]X X X X Extracts X X X X X X X X Extracts X X X X ..... capital by a company and paying off the balance to the shareholders would result in extinguishment of rights in the shares held by the shareholder and would amount to transfer. The amount received by a shareholder on the reduction of capital is subject to capital gains. The Supreme Court held that the amount distributed by the company on reduction of its share capital has two components, namely ..... X X X X Extracts X X X X X X X X Extracts X X X X
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