Urgent please

murli (Article Assistant) (25 Points)

10 May 2015  
Hello Everyone, i just want to know that, if an convertible preference shares is issued at premium than by the private limited company, than how fair market value of the shares will be arrived for taxability in 56(2)(7) purpose. As 56(2)(7), give reference to rule 11 UA for its valuation purposes, and rule 11UA says that fair market value of unquote shares other than equity share will be the value which the share can fatch in the open market, but nowhere method of calculation is prescribed. So, please give your valuable suggestions regarding valuation method. Thanks in Advance.