TaxTMI 
TaxTMI 
Income-tax (Twelfth Amendment) Rules, 2007 - Valuation of specified security or sweat equity share being a share in the company.
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....ith Explanation (i) to clause (ba) of sub-section (1) of section 115WC of the Income-tax Act, 1961 (43 of 1961), read with section 22 of the General Clauses Act, 1897 (10 of 1897), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:- 1. (1) These rules may be called the Income-tax (Twelfth Amendment) Rules, 2007.  ....
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....alue shall be the average of the opening price and closing price of the share on that date on the said stock exchange: Provided that where, on the date of vesting of the option, the share is listed on more than one recognized stock exchanges, the fair market value shall be the average of opening price and closing price of the share on the recognised stock exchange which records the highest volu....
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.... the fair market value shall be such value of the share in the company as determined by a merchant banker on the specified date. (4) For the purpose of this rule,- (a) "closing price" of a share on a recognised stock exchange on a date shall be the price of the last settlement on such date on such stock exchange: Provided that where the stock exchange quotes both "buy" and "sell" pri....
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.... (e) "specified date" means,- (i) the date of vesting of the option; or (ii) any date earlier than the date of the vesting of the option, not being a date which is more than 180 days earlier than the date of the vesting; (f) "equity share" shall have the meaning assigned to it in section 85 of the Companies Act, 1956 (1 of 1956). [F.No.142/25/2007-TPL]....