The Central Government has notified the Income Tax (6th Amendment), Rules, 2018 which shall come into force from the date of their publication in the Official Gazette i.e 24-05-2018.
The Amendment to Rule 11UA(2)(b) of Income Tax Rules 1962 has removed a Chartered Accountant from the list of authorized professional who can calculate the fair market value of the shares.
Consequently, all valuations of unlisted equity shares, as per DCF method, on or after May 24, 2018 shall be done only by a Merchant Banker. However, there is no change in the valuation method and eligibility for the valuation of unquoted shares as per the Rule 11UA(2)(a) of Income Tax Rules 1962.
The Amendment to Rule 11UA(2)(b) of Income Tax Rules 1962 has removed a Chartered Accountant from the list of authorized professional who can calculate the fair market value of the shares.
Consequently, all valuations of unlisted equity shares, as per DCF method, on or after May 24, 2018 shall be done only by a Merchant Banker. However, there is no change in the valuation method and eligibility for the valuation of unquoted shares as per the Rule 11UA(2)(a) of Income Tax Rules 1962.
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