Calculation under rule 11ua

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Amit dimri

Amit dimri (Querist)
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15 January 2016 How to calculate discounted free cash flow under rule 11ua of Income Tax Act, 1961.

Amol S Joglekar

Amol S Joglekar (Expert)
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15 January 2016 01. Discounted Free cash flow (DCF) as decided by the merchant banker.: We need to contact the merchant banker for this. They provide us with the rate they are using in their assessments of proposals.
02. Discounted Free |Cash Flow (DCF) as decided by the accountant : Accountants (i.e. CA) normally look upon to Merchant Bankers, although the CA can justify his own judgement about the RISK free rate taking into account the various conditions prevalent in the economy.
At present 10 to 12% may be regarded as risk free rate

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