Income Tax Act, 1962 (Act No. 58 of 1962)

Chapter II : The Taxes

Part II : Special Provisions Relating to Companies

40C. Issue of shares or granting of options or rights for no consideration
Purchase cart Previous page Return to chapter overview Next page

[Section 40C heading substituted by section 59 of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]

 

Where a company issues a share or grants an option or other right in respect of the issue of a share to a person for no consideration, the expenditure actually incurred by the person to acquire that share, option or right must be deemed to be nil.

 

[Section 40C substituted by section 59 of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]