https://www.taxtmi.com/circulars?id=4733 Valuation of unquoted equity shares uses the profit-earning capacity (yield) method as primary; break-up value is limited to exceptional cases such as imminent liquidation or where profits are too uncertain. Maintainable profits are the adjusted average of five years' book profits after removing non-recurring items, adding back certain allowances, deducting tax and excluding amounts for preference dividends. Specific capitalisation rates are prescribed by asset nature. A premium applies for substantially but now wholly holding companies, and parent and wholly-owned subsidiaries are treated as one entity for valuation. en-us Wed, 31 Mar 1982 00:00:00 +0530 Sat, 02 Aug 2008 13:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=4733 Valuation of unquoted equity shares uses the profit-earning capacity (yield) method as primary; break-up value is limited to exceptional cases such as imminent liquidation or where profits are too uncertain. Maintainable profits are the adjusted average of five years' book profits after removing non-recurring items, adding back certain allowances, deducting tax and excluding amounts for preference dividends. Specific capitalisation rates are prescribed by asset nature. A premium applies for substantially but now wholly holding companies, and parent and wholly-owned subsidiaries are treated as one entity for valuation. Circulars Income Tax Wed, 31 Mar 1982 00:00:00 +0530 https://www.taxtmi.com/circulars?id=4733