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Valuation Rules for determination of Fair Market Value under section 56

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..... the transfer of immovable property and the date of registration are not the same, the stamp duty value on the date of the agreement may be taken for the purposes of this sub-clause 2. SECTION 56(2)(x)(b) If received without consideration and Stamp Duty Value (SDV) is greater than ₹ 50,000, then SDV will be considered as INCOME FROM OTHER SOURCES In case of inadequate consideration, INCOME FROM OTHER SOURCES = SDV - Actual consideration, provided that the difference between SDV and actual consideration is greater than higher of (a) ₹ 50,000 or (b) 5% of the consideration (for A.Y. 2019-20 and 2020-21) or 10% of the consideration (From A.Y. 2021-22) .....

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..... lue, on the valuation date, of such unquoted equity shares, as shall be determined under sub-clause (a), sub-clause (b), sub-clause (c) or sub-clause (e), of rule 11UA(2), at the option of the assessee. 1.2 Where the consideration received by the assessee is from a non resident under sub-clauses (a) to (e) of rule 11UA(2), at the option of the assessee. Illustration : If a venture capital undertaking receives a consideration of fifty thousand rupees from a venture capital company for issue of one hundred shares at the rate of five hundred rupees per share, then such an undertaking can issue one hundred shares at this rate to any other investor within a period of ninety days before or after the receipt o .....

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..... shares even if shown as contingent liabilities. Not to include Equity Share capital Dividend payable on equity and preference shares if such dividend has not been declared before the date of transfer at AGM Credit balance of Profit Loss Account Any Reserve e.g. General Reserve, Workmen Compensation Reserve, Foreign Exchange, Fluctuation reserve Excess provisions including excess provision for Tax Provision for unascertained liabilities Contingent Liabilities Note:- Chartered Accountant cannot determine the value of share. - Manuals - Ready reckoner - Law and practice - Reference Guide - Quick Commentary Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxT .....

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