Income tax related valuations
Indian Income tax laws stipulate the need for valuation in several situations. With team of professionals comprising mostly of individuals who are also chartered accountants, we are adept to help you deal with any of such requirements.
Under extant Indian Income tax law, situations where we could assist you are:
- Determining fair market value of unquoted equity shares: section 56(2)(x) and section 50CA of the Indian Income-tax Act, 1961. Applicable rule would be 11U and 11UA
- Computing income attributable to indirect transfer of assets , including transfer of share or interest in a company under section 9(1)(i). Applicable valuation rule would be 11UB and 11UC
Incwert can help in regulatory compliance valuations. Be it under Companies Act, 2013, FEMA or SEBI, we can offer skilled expertise and defend our valuation positions.
Valuation under Companies Act, 2013 may be required in situations such as:
- Allotment of securities other than cash sec.39(4)
- Issue of sweat equity shares sec.54(1)
- Issue of shares/ convertible securities on preferential basis sec.62(1)(c)
- scheme of debt restructuring, compromise or arrangement sec.230-232
- purchase of minority shareholding sec.236(2)
- company liquidation sec.281
- valuation for swap purposes
Valuation under FEM (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017
Pricing guidelines under SEBI regulations – Issue of Capital and Disclosure Requirements, 2018; Listing Obligations And Disclosure Requirements, 2015.