Slide background
Excellence in Execution
Slide background
KMS is different
Slide background
Trusted Relationship
Slide background
Quality with Timeliness

Central Board of Direct Taxes releases rules to compute fair market valuation of unlisted shares

The Central Board of Direct Taxes (CBDT) on Friday released draft methodology for arriving at the fair market valuation (FMV) of the unquoted shares (shares of unlisted entities) involved in a transaction for the purpose of taxation. This will bring the rules in line with the amendment made in the Finance Act, 2017.Under the extant rules, if a person receives jewellery, artistic work, shares and securities for inadequate consideration, FMV of the same is taken into account for computing taxable income. Similarly, for immovable property, the stamp duty value is taken into consideration for determining taxability. However when these assets are received as underlying assets of unquoted equity shares of company, the book value (and not the FMV / stamp duty value) is taken into consideration for determining the value of such shares.

Source : http://www.financialexpress.com/economy/central-board-of-direct-taxes-releases-rules-to-compute-fair-market-valuation-of-unlisted-shares/656409/