Valuation of leasehold land

[GOPAL HARLALKA]

A company own leasehold land leased by Adityapur Development Authority for 30 years,

My query is how to determine value of shares of the company for income tax purpose. Will

it be at book value or at the present value fixed by the Development Authority,

CA Gopal Harlalka

Jamshedpur

AI Summary

Guidance on valuing company shares for income tax: Use stamp duty assessment value per rule 11UA, not book value. A company holds leasehold land leased by a development authority for 30 years and seeks guidance on determining the value of its shares for income tax purposes. The question is whether the valuation should be based on the book value or the present value set by the development authority. In response, it is advised to refer to rule 11UA, which states that the value considered for stamp duty assessment should be used.