MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 25th September, 2023
INCOME-TAX
G.S.R. 685(E) .— In exercise of the powers conferred by sub-clause (i) of clause (a) of the Explanation to clause (viib) of sub-section (2) of section 56 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules,1962, namely:‒
1. Short title and commencement.– (1) These rules may be called the Income-tax (Twenty first Amendment), Rules, 2023.
(2) They shall come into force from the date of publication of the notification in the Official Gazette,
2. In the Income-tax Rules, 1962, in rule 11UA, for sub-rule
(2), the following sub-rules shall be substituted, namely:– ‘(2) Notwithstanding anything contained in sub-clause (b) or sub-clause (c), as the case may be, of clause (c) of sub-rule (1):–
(A) the fair market value of unquoted equity shares for the purposes of sub-clause (i) of clause (a) of the Explanation to clause (viib) of sub-section (2) of section 56 shall be the value, on the valuation date, of such unquoted equity shares, as shall be determined under sub-clause (a), sub-clause (b), sub-clause (c) or subclause (e), at the option of the assessee, where the consideration received by the assessee is from a resident ; and under sub-clauses (a) to (e) at the option of the assessee, where the consideration received by the assessee is from a non-resident, in the following manner:-
(a) the fair market value of unquoted equity shares =(A–L)× [PV/PE], where,
For full notification please refer to the attachment
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Notification No : 81 /2023Published in Income Tax
Source : https://egazette.gov.in/WriteReadData/2023/248994.pdf