Valuation Under Income Tax Act
There are different types of taxes where tax valuation is required.
Income Tax: As per rule 11UA, Income tax is required to be paid when the minimum consideration for a sale or buy transaction is higher than the actual transaction value or Fair Market Value. The Fair Market Value can be calculated by Adjusted Net Asset Value or Based upon Discounted Cash Flow method and must be certified by a SEBI Registered Category I Merchant Banker.
Capital Gains Tax: Profits gained by capital asset transfer are chargeable to tax under capital gains. Determining the indexed cost of the acquisition and property value is important for the assessment of capital gains.
At My Valuation, we provide comprehensive tax valuation services to help businesses stay compliant with the laws.