Case law › Notifications › 2019 › Notification No. 9/2019 [F.No.370142/5/2018-TPL (Pt.)] / SO 584(E)

Notification 31 January 2019

Notification No. 9/2019 [F.No.370142/5/2018-TPL (Pt.)] / SO 584(E)

: B1 अिधसूचना को !,B करन पर W$% पर !$ 2 !,B 6? पड़गा।

What this is

Notification No. 9/2019 [F.No.370142/5/2018-TPL (Pt.)] / SO 584(E) was published on 31 January 2019. Its subject is : B1 अिधसूचना को !,B करन पर W$% पर !$ 2 !,B 6? पड़गा।.

What it does

In exercise of the power under clause (ii) of the proviso to clause (viib) of sub-section (2) of section 56 of the Income-tax Act, 1961, the Central Government amends its notification S.O. 2088(E) dated 24 May 2018. The exemption is recast: instead of consideration received by a company for issue of shares exceeding face value where the consideration came from an investor in accordance with an approval granted by the Inter-Ministerial Board of Certification under clause (i) of sub-para (3) of para 4 of the Department of Industrial Policy and Promotion notification G.S.R. 364(E) dated 11 April 2018, it now covers consideration received by a company from an investor for issue of shares exceeding face value where the issue of shares is approved by the Central Board of Direct Taxes under para 4 of that notification as modified by the notification of 16 January 2019.

Why it was issued

The explanatory memorandum states that by giving retrospective effect to the notification, nobody shall be affected adversely.

Who it reaches

Start-up companies issuing shares above face value
Investors subscribing to such shares
The Central Board of Direct Taxes, which now grants the approval
Assessing Officers examining a section 56(2)(viib) addition

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.3	s.3
s.56	s.2, s.92

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it.

: B1 अिधसूचना को !,B करन पर W$% पर !$ 2 !,B 6? पड़गा।
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 31st January, 2019
(INCOME-TAX)
S.O. 584(E).—In exercise of the powers conferred by clause (ii) of the proviso to clause (viib) of subsection (2) of section 56 of the Income-tax Act, 1961 (43 of 1961), Central Government hereby makes following amendment to the notification number S.O. 2088(E) dated the 24th May, 2018 published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii), dated the 24th May, 2018, namely:

2. In the said notification for the words, brackets, figures, and letters "consideration received by a company for issue of shares that exceeds the face value of such shares, if the consideration has been received for issue of shares from an investor in accordance with the approval granted by the Inter-Ministerial Board of Certification under clause (i) of sub-para (3) of para 4 of the notification number G.S.R. 364(E), dated 11th April, 2018 and published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i) dated the 11th April, 2018 issued by the Department of Industrial Policy and Promotion", the words, letters, figures and brackets "consideration received by a company from an investor for issue of shares that exceeds the face value of such shares, if such issue of shares is approved by the Central Board of Direct Taxes under para 4 of notification number G.S.R. 364(E) dated 11th April, 2018 and published in the Gazette of India, Extraordinary, Part II Section 3, Sub-section (i) dated the 11th April, 2018 issued by Department of Industrial Policy and Promotion as modified by notification number 34(E) dated 16th January, 2019 and published in the Gazette of India, Extraordinary, Part II Section 3, Sub-section (i) dated the 16th January, 2019" shall be substituted.

3. This notification shall be deemed to have come into force retrospectively from the 16th January, 2019.

[Notification No. 9/2019/F. No. 370142/5/2018-TPL (Pt.)]

PRAVIN RAWAL, Director (Tax Policy and Legislation)

Note : Principal notification was published in the gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide S.O. 2088(E) dated the 24th May, 2018

Explanatory Memorandum: By giving retrospective effect to the present notification, no body shall be affected adversely.

Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

From when

16 January 2019, retrospectively.

What to watch

The notification is deemed to have come into force retrospectively from 16 January 2019.
The approving authority changes from the Inter-Ministerial Board of Certification to the Central Board of Direct Taxes.
The approval is now referred to para 4 of the Department of Industrial Policy and Promotion notification as a whole, as modified on 16 January 2019, and not to clause (i) of sub-para (3) of that para.
The exemption operates only where the approval covers the issue of shares; an investment without such approval remains within the charge.

Where you meet it

In the assessment of a company that has issued shares at a premium, where the share premium is examined under section 56(2)(viib) and the approval is produced in answer.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Notification No. 94/2026 [F. No. 370142/24/2026-TPL] / G.S.R. 646(E) : Income-tax (Second Amendment) Rules, 2026 : Amendment of rule 157 of the Income tax Rules, 2026 to align the definition of the specified fund with rule 114AAB of the Income tax Rules, 1962 — Ministry of Finance 21 July 2026
Notification No. 64 — [भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 7 16 April 2026
Notification No. 63/2026 [F. No. 370142/13/2026-TPL]/ GSR 268(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(i)] 10 April 2026
Notification No. 62/2026 [F. No. 370142/10/2026-TPL]/ GSR 267(E) — Ministry of Finance 10 April 2026
Notification No. 61/2026 [F. No. 370142/9/2026-TPL] / GSR 266(E) — [भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3 10 April 2026
Notification No. 60/2026 [F. No. 370142/8/2026-TPL]/ GSR 265(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(i)] 10 April 2026

← Notification No. 8/2019 [F.No. 225/344/2018-ITA-II] / SO 772(E) · Notification No. 4/2019 [F. No.370142/22/2017-TPL] / GSR 76(E) →

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.