What is Rule 11UA?
Determination of fair market value. 11UA. [( 1)] For the purposes of section 56 of the Act, the fair market value of a property, other than immovable property, shall be determined in the following manner, namely,— (a) valuation of jewellery,—
What is valuation date as per rule 11UA?
Valuation date. Rule 11U of the IT Act states that for the purpose of valuation under rule 11UA, the date of valuation must be the date on which the asset is transferred. However, in real life, a valuer can encounter situations where the balance sheet is not available as of the date of the transfer of assets.
What is Rule 12 of income-tax rules?
The person who is the owner of more than one house property and the income of such house property is chargeable under the head ‘Income from House Property’; The person who is assessable for the whole or part of the income on which TDS has been deducted in the hands of a person other than the assessee.
Who can do valuation under Rule 11UA?
Income Tax Rule 11UA deals with Valuation of unquoted equity shares. As per Clause (b) of Sub-Rule 2 of Rule 11UA earlier merchant banker and Chartered Accountant were allowed to do valuation of unquoted equity shares under Discounted Free Cash Flow method but vide Notification No.
What is Rule 17 2 of Income Tax Act?
“Perquisite” is defined in the section 17(2) of the Income tax Act as including: (i) Value of rent-free/accommodation provided by the employer. (ii) Value of any concession in the matter of rent respecting any accommodation provided to the assessee by his employer.
What is Rule 12 of income-tax Rules 1962?
Rule 12(2) provides that returns shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax, if any, claimed to have been deducted or collected at source or the advance tax or tax on self-assessment, if any, claimed to have been paid or any …
What is Rule 3 of Income Tax Act?
The benefit of the rule is that when an employer spends any amount for the medical treatment of an employee for any of the diseases specified by this rule, the amount will not be taxable in the Income Tax assessment of the employee.
How do you calculate FMV per share?
Determining the fair market value is relatively straightforward for stock that is traded on a public exchange. In such cases, the fair market value is calculated by taking the average of the highest and lowest selling prices of the day.
What is 11UA valuation?
11UA. [( 1)] For the purposes of section 56 of the Act, the fair market value of a property, other than immovable property, shall be determined in the following manner, namely,— (a) valuation of jewellery,—
What is Rule 37BC?
Rule 37BC. Rule 37BC provides for specified payments being made to non-residents wherein the provision of section 206AA of the Act would not be applicable. The specified payments are (i) Interest,(ii) Royalty,(iii) Fees for technical services (FTS),(iv) Payments on transfer of any capital Asset.
What is Section 56 2 of income-tax?
Section 56(2)(x) of the Income Tax Act (‘IT Act’) provides that where any person receives any property (including shares of a company) for a consideration less than its fair market value (computed as per the prescribed method), the fair value as exceeding the consideration would be taxable in the hands of the person …
What is the fair valuation methodology under Rule 11UA (2)?
The methodology to be adopted for the purpose of arriving at the fair valuation of such shares under this section has been specifically stated under rule 11UA (2) separately for equity shares and shares other than equity shares.
What is rule 11UA of income tax rules?
Rule 11UA. of Income-tax Rules. 1. if the quoted shares and securities are received by way of transaction carried out through any recognized stock exchange, the fair market value of such shares and securities shall be the transaction value as recorded in such stock exchange;
What is rule 11uaa for section 50ca?
Newly inserted Rules 11UAA provides valuation methodology to be adopted for the purpose of new section 50CA. It provides that equity shares covered there under should be valued as per above Rule 11UA (1)(c)(b) and preference shares should be valued as per Rule 11UA(1)(c)(c) which provides for valuation it will fetch if sold in open market.
What is rule 11UA (2) (B) under Section 56 (2) (VIIB)?
The word accountant has been omitted under Rule 11U and Rule 11UA (2) (b) which implies that for the purpose of section 56 (2) (viib), in case of shares other than equity shares, the fair valuation certified by only merchant bankers will be valid after the date of publishing of such notification.