Income-Tax Valuation
Quick Reference for Your Business
FMV for Tax Compliance โ everything you need to know about Income-Tax Valuation.
Section 56(2)(x) taxes the recipient on the gap above FMV.
Section 50CA deems FMV as the seller's sale value.
FMV needed to check taxability (relatives are exempt).
FMV of the undertaking for tax.
and latest balance sheet
Property, investments, jewellery held
Issue / transfer / gift
and paid-up capital details
For the valuation
| Point | Details |
|---|---|
| Rules | Rule 11UA (FMV) and Rule 11UAA (transfers) |
| NAV method | Balance-sheet based โ a CA can certify |
| DCF method | Requires a SEBI-registered merchant banker |
| Angel tax (56(2)(viib)) | Abolished from AY 2025-26 โ share premium no longer taxed |
| Still applies | Section 56(2)(x) and Section 50CA remain in force |
A real, qualified Chartered Accountant
Not an agent โ a CA who computes FMV under the right rule and method so it's accepted by the tax department.
The right method, the right valuer
We know when a Registered Valuer or merchant banker is legally required โ so the report is accepted.
Reports that hold up
Backed by proper workings and records that stand up to the tax department, banks and auditors.
Clear updates in your language
Simple updates in Telugu and English โ you always know where things stand.
Honest, practical advice
Straight answers you can act on โ no jargon, no overselling.
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