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Income Tax Act, 1962 (Act 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

[Heading amended 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 amended by section 59 of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]