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

[CASusheel Gupta]

Refer to rule 11UA

It shall be the value taken for assessment of stamp duty

CA Susheel Gupta

9811004443

AI Summary

Valuation of leasehold land: use the stamp duty assessment value as the basis for income tax share valuation.
The operative valuation for company shares where the asset is leasehold land is the value taken for assessment of stamp duty; this statutory valuation standard, as invoked by the respondent referring to the applicable valuation rule, governs income tax valuation rather than relying on book value or the company's internal figures.