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 ..... rred 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 specified date when such shares a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, 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 estimated to be price it would fetch if sold in the open market on the specified da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SA; 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 representing provisions made for meeting liabilities, other than ascertained liabilities; (v) any amount representing provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 56 (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 adopted or assessed or assessable by any authority of the Central Government or a State Government for the purpose of payment of stamp duty in respect of an immovable property; (j) unquoted share and secu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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