Fair market value of unlisted preference shares

Tax queries 473 views 4 replies

 

Hello sir,

As per income tax act, capital gain on unlisted shares is determined by sale consideration minus cost of acquisition. In case of computation of sale consideration for unlisted equity shares,we have to take higher of sale price and fair market value. Rule 11(UA)(1)((c)(b) is applicable for calculating fair market value for unlisted equity shares. In the same way, which section is applicable for computation of fair market value in case of unlisted preference shares?

 

Replies (4)
This forum cNt be for knowledge sake
When you don't have knowledge then why you are here @ sabyasachi mukherjee

 

Fair market value will be the valuation report prepared by a merchant banker or the same rule (Rule 11(UA)(1)((c)(b) applicable for both preference shares and equity shares?

 

If you don't know the answer, please skip this forum. sabyasachi mukherjee


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