The CBDT comes out with changes in Rule 11UA through Income-tax (Fifteenth Amendment) Rules.
In view of Section 56(2)(viib), in case a closely held company receives from any resident any consideration for issue of shares that exceed the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares shall be taxable as income from other sources in the hands of recipient. Such fair market value of unquoted equity shares is governed by Rule 11UA.
As per revised Rule 11UA, value of unquoted equity shares for such purpose shall be determined at the option of the assessee using any of the following method:
a) As per method specified in Rule 11UA(3)(ii)(a); or
b) As determined by a merchant banker or an accountant as per the "Discounted Free Cash Flow method"
3 comments:
What is the advantage gained by the company in respect of revised rule 11 UA?
and in discounted Free cash Flow method, is there any specific calculation base? in which we need to calculate in every aspect?
What is the advantage gained by the company in respect of revised rule 11 UA?
and in discounted Free cash Flow method, is there any specific calculation base? in which we need to calculate in every aspect?
When does this notification come into effect? Has it been published in the gazette of India.
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