TMI BlogMethod of valuation for the purposes of sub-section (2) of section 115TDX X X X Extracts X X X X X X X X Extracts X X X X ..... amount of deferred expenditure which does not represent the value of any asset. (2) For the purpose of sub-rule (1), the fair market value of the asset shall be determined in the following manner, namely:- (I) Valuation of shares and securities,- (a) the fair market value of quoted share and securities shall be the following:- (i) the average of the lowest and highest price of such shares and securities quoted on a recognised stock exchange as on the specified date; or (ii) where on the specified date, there is no trading in such shares and securities on a recognised stock exchange, the average of the lowest and highest price of such shares and securities on a recognised stock exchange on a date immediately preceding the spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... depreciation; (iv) any amount representing provision for taxation, other than amount of income-tax paid as deduction or collection at source or as advance tax payment as reduced by the amount of income-tax claimed as refund under the Act, to the extent of the excess over the tax payable with reference to the book profits in accordance with the law applicable thereto; (v) any amount representing provisions made for meeting liabilities, other than ascertained liabilities; (vi) any amount cumulative preference shares; PE = total amount of paid up equity share capital as shown in the balance-sheet; PV= the paid up value of such equity share, (c) The fair market value of shares and securities other than equity shares shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earch and Training, Royal institute of Chartered Surveyors; India Chapter, American Society of Appraisers, USA; Appraisal institute, USA or a valuer who is appointed by any public sector bank or public sector undertakings for valuation purposes. (3) For the purpose of sub-section (2) of section 115 TD of the Act , the total liability of the 2 [ specified person ] shall be the book value of liabilities in the balance sheet on the specified date but not including the following amounts, namely:- (i) capital fund or accumulated funds or corpus, by whatever name called; (ii) reserves or surpluses or excess of income over expenditure, by whatever name called; (iii) any amount representing contingent liability; (iv) any amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of business; (e) recognised stock exchange shall have the same meaning as assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (f) registered valuer means a person registered as a valuer under section 34AB of the Wealth-tax Act, 1957 (27 of 1957); (g) securities shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (h) specified date means the date referred to in Explanation to section 115TD of the Act ; 3 [ (ha) specified person shall have the same meaning as assigned to it in clause (iia) of the Explanation to section 115TD; ] (i) stamp duty value means the value ..... X X X X Extracts X X X X X X X X Extracts X X X X
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