Question And Answer
Subject: Immovable property valuation under rule 11UA of the income tax act
Querist: Sriram
Answered by:
Tags: ,
Date: July 29, 2023
Query asked by Sriram

With regard to valuation of unlisted shares, while considering the immovable property as per Rule 11ua at Stamp Duty Value the resulting share price is in negative number. Because the Guideline value is less than its Book Value. So, can we consider Book Value or Guideline Value whichever is higher for immovable property in valuation of unlisted shares as Rule 11ua provides only for Stamp Duty value w.r.t immovable property.

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For the purpose of valuing the shares of an unquoted company where there is an immovable property held by a company, the immovable property has to be valued at stamp duty value according to Rule 11UA(c)(b) of the Income-tax Rules, 1962.

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