Ref: ICAI/TRD/JUNE2018 Dated: 28.06.2018
Shri Pravin Rawal,
Director (Tax Policy and Legislation)
New Delhi 110001.
Re: Empowering the members of the Institute of Cost Accountants of India (ICAI) for Valuation and certification thereof – Proposal for amendment in Income Tax Rules Income Tax Rule 11UA deals with Valuation of jewellery, archaeological collections and shares and securities for the purpose of Section 56. Erstwhile 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. 23/2018 dated 24th May, 2018 it is provided that now only merchant banker can only carry out the valuation of unquoted equity shares under Discounted Free Cash Flow method.
The Institute of Cost Accountants of India (ICAI) is a premier Professional Education Institute constituted under an Act of the Parliament. The Institute is the pioneer in the Cost and Management Accounting profession in the country and member of all the Global Institution in the area of accounting, management accounting etc. The Institute actively taking part in several initiatives of the Government and CBDT towards bringing in reforms in the taxation statute in the country including the new Direct Tax Code. The institute is also actively participating from time to time on various issues faced by the assessees in respect of Tax matters be it Direct Tax as well as Indirect taxes.
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