Amit Maheshwari, tax partner at AKM Global said,"The amendment has removed genuine hardships being faced by taxpayers in these special situations."
These special situations needed to be addressed as this is not the case where any undue benefit has accrued to recipients, he said.
Aravind Srivatsan, partner at Nangia Andersen said,"Given the volatile current market scenario, the income tax rules provide some cushion for the investors to consider schemes offered to investors on high profile rescue packages where public interest is involved and there is a need to prevent erosion of investor savings."
For this purpose, the Central Board of Direct Taxes has amended relevant rules inserted through the Finance
The rules relate to deemed taxation of the shareholders who get shares below the fair market prices.
Under the Yes Bank
reconstruction scheme, investor bank and investors are allowed to take shares of the Bank at a price of Rs 10 of the face value of Rs 2. The market price of Yes Bank
share stood at Rs 25.60 close on Tuesday on the Bombay Stock Exchange.
Besides the banks
cited above, Federal Bank, IDFC First Bank, Bandhan Bank invested in Yes Bank, according to information given to the exchanges in March.