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Shristi Rajput
April 29, 2026

Submitted By: Shristi Rajput

Circular No 2/2019 Section 56 of Income tax act

Circular No. 2/2019 (CBDT) clarifies the applicability of Section 56(2)(viib) of the Income-tax Act relating to taxation of share premium received by companies. It provides relief to eligible startups by specifying conditions under which such share premium will not be taxed as income, in line with government measures to support startup funding.

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