New rules for valuation of fair market value of shares

On 12 July, 2017, the Central Board of Direct Taxes (CBDT) has issued final rules for the determination of fair market value (FMV) of unquoted equity shares for the purposes of section 56(2)(x) and section 50CA of the Income-tax Act, 1961 (the Act). The rules apply to all the transactions taxable during financial year(s) ending on or after 01 April, 2017. I.e. From FY 2017-18.