Valvuation of equity shares under rule 11UA.

[Vikas Aggarwal]

Dear Sir,

Please help me in the following isses.

1. Treatment of Reserve & surplus, Deffered Tax liabilities & asset & share application money for calculation of value of shares under rule ua of income tax .

Regards,

CA Vikas Aggarwal

[CAGOPALJI AGRAWAL]

Vikas Ji

 

As far as reserves and surplus is concerned and deferred tax liabilities, it would not be treated as liabilities but to my view share application would be treated as liabilities.

AI Summary

Valuation under Rule 11UA: reserves and deferred tax are not liabilities; share application money treated as liability.
Under Rule 11UA, reserve and surplus and deferred tax liabilities are not treated as liabilities for share valuation, whereas share application money is treated as a liability and included in the liability side for computing equity share value.