DCF Method Provides Fair Share Valuation u/s 56(2)(vii); Book Value Alone is Insufficient for Tax Purposes.

DCF Method Provides Fair Share Valuation u/s 56(2)(vii); Book Value Alone is Insufficient for Tax Purposes. https://www.taxtmi.com/highlights?id=71507 Addition u/s 56(2)(vii) - Determination of value of shares on the basis of financial statement of a Company or the book value does not have much relevance under DCF method, because it is based upon, fair expected revenue growth and fair expected cash flow for a period of five years; discount rate and terminal growth rate; and terminal value, etc. are the factors which are taken in the consideration. - Rejection of valuation under DCF Method is not correct - AT en-us Thu, 17 Aug 2023 14:43:54 +0530 Thu, 17 Aug 2023 14:43:54 +0530 TaxTMI RSS Generator DCF Method Provides Fair Share Valuation u/s 56(2)(vii); Book Value Alone is Insufficient for Tax Purposes. https://www.taxtmi.com/highlights?id=71507 Addition u/s 56(2)(vii) - Determination of value of shares on the basis of financial statement of a Company or the book value does not have much relevance under DCF method, because it is based upon, fair expected revenue growth and fair expected cash flow for a period of five years; discount rate and terminal growth rate; and terminal value, etc. are the factors which are taken in the consideration. - Rejection of valuation under DCF Method is not correct - AT Highlights Income Tax Thu, 17 Aug 2023 14:43:54 +0530 https://www.taxtmi.com/highlights?id=71507