Rule 11UA (1)(c)(b) - Valuation of unquoted equity shares using Break Up Values I CA Pramod Jain

[@shridhardeshpande1790]

18:50 Provision fkr taxation

[@kartikam]

Hello! What do we do if the reserves are negative? For example, total liabilities are 5L, but out of that reserves are -1L and equity is 1L. When I calculate “L”, will it be 5L itself ?

[@capramodjain3720]

It means as per NAV value is 0 unless some of the assets have higher MV than what is reflecting in the books.

[@shreyavirmani004]

Sir 11(c)(b) C FMV of share & securities as per rule means same rule reapply for there investments & immovable property

[@capramodjain3720]

Yes.
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[@Chartered_Rascal]

Sir, for valuation with regards to Immovable property, we consider SDV or value as assessed /assessable by the authority. What if property was purchased 2 mths prior to date of valuation and cost is 53L, but circle value on date of valuation was 35L. Which value to be considered?

[@capramodjain3720]

Circle value

[@Chartered_Rascal]

@@capramodjain3720 thanks a lot