Article

Angel Tax

Decoding CBDT’s draft rules for the valuation of unquoted equity shares

The Finance Act, 2023 (“FA 2023”) amended section 56(2) (viib) of the Income- tax Act, 1961 (“IT Act”) with effect from 1 April 2023, which brings the issue of shares to non-resident investors within the ambit of the aforesaid section. The Central Board of Direct Taxes (CBDT) vide draft notification dated 26 May 2023, has proposed amendments to Rule 11UA of the Income-tax Rules, 1962 for computation of fair market value (“FMV”) of unquoted equity shares for section 56(2) (viib) of the IT Act. Suggestions/comments on the same were invited.
Did you find this useful?