TaxTMI 
TaxTMI 
Valuation Rules for determination of Fair Market Value - (New) Rule 57 / (Old) Rule 11UA
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the jewellery is received by any other mode and its value exceeds Rs.50,000, the assessee may obtain a report from a registered valuer regarding the price it would fetch, if sold in the open market on the valuation date. Archaeological collections, drawings, paintings, sculptures or any work of art (herein referred as artistic work) (a) The price which such artistic work would fetch, if sold in the open market on the valuation date; or (b) if the artistic work is received by way of purchase from a registered dealer on the valuation date, the invoice value of such artistic work; or (c) if the artistic work is received through any other means and its value exceeds Rs.50,000, the assessee may obtain a report from a registered....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt of deferred expenditure which does not represent the value of any asset; B = the price which the jewellery and artistic work would fetch, if sold in the open market on the basis of the valuation report obtained from a registered valuer; C = fair market value of shares and securities as determined in the manner provided in this rule; D = the value adopted or assessed or assessable by any authority of the Government for the purpose of payment of stamp duty in respect of the immovable property; and L = book value of liabilities shown in the balance sheet, but not including the following amounts:- (i) the paid-up capital in respect of equity shares; (ii) the amount set apart for payment o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ble property [ Rule 11UA of Income Tax Rules, 1962 ] a. Jewellery, b. Archaeological collection, drawings, paintings, sculptures or any work of art (referred as artistic work). (i) the fair market value of jewellery/ artistic work shall be estimated to be the price which such jewellery would fetch if sold in the open market on the valuation date; (ii) in case the jewellery/ artistic work is received by the way of purchase on the valuation date, from a registered dealer, the invoice value of the jewellery/ artistic work shall be the fair market value; (iii) In case the jewellery/ artistic work is received by any other mode and the value of the jewellery/ artistic work exce....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nquoted equity shares = (A+B+C+D - L)x (PV)/(PE), where, A= book value of all the assets (other than jewellery, artistic work, shares, securities and immovable property) in the balance-sheet as reduced by,- (i) any amount of income-tax paid, if any, less the amount of income-tax refund claimed, if any; and (ii) any amount shown as asset including the unamortised amount of deferred expenditure which does not represent the value of any asset; B = the price which the jewellery and artistic work would fetch if sold in the open market on the basis of the valuation report obtained from a registered valuer; C = fair market value of shares and securities as determined in the manner provided in this ru....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sted in any recognised stock exchange the fair market value of unquoted shares and securities other than equity shares in a company which are not listed in any recognized stock exchange shall be estimated to be price it would fetch if sold in the open market on the valuation date and the assessee may obtain a report from a merchant banker or an accountant in respect of such valuation What are the inclusions and exclusions in Assets & Liabilities for the purpose of valuation of unquoted equity shares? Assets Include book value of all assets including fixed assets, current assets and investments. Not to include • Advance tax + TDS + TCS - Income tax refund claimed. • Debit balance of Profit & Loss Acc....