Income- tax (16thAmendment) Rules, 2021
CBDT had
notified Rules for Computation of Fair value of Capital Assets in case of slump
sale. For this purpose, a new Rule 11UAE have been inserted by amending Income
tax Rules.
As per Rule
11UAE(1), Fair Value of Capital Asset shall be
FMV 1 OR FMV 2, whichever is higher.
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FMV 1 = A+ B+
C+ D- L |
FMV 2 = E+ F+ G+ H |
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A |
book value of all the assets
(other than jewellery, artistic work, shares, securities and immovable
property) as appearing in the books of accounts of the undertaking or the
division transferred by way of slump sale as reduced by the following amount
which relate to such undertaking or the division, — (i)
any amount of income-tax paid, if any, less the
amount of income-tax refund claimed, if any; and (ii)
any amount shown as asset
including the unamortised amount of deferred expenditure which does not
represent the value of any asset; |
E |
value of the monetary
consideration received or accruing as a result of the transfer; |
|
B |
the price which the jewellery
and artistic work would fetch if sold in the open market on the basis of the
valuation report obtained from a registered valuer |
F |
fair market value of
non-monetary consideration received or accruing as a result of the transfer
represented by property referred to in rule 11UA (1) determined in the manner
provided in rule 11UA (1) for the property covered in that sub- rule; |
|
C |
fair market value of shares and
securities as determined in the manner provided in rule 11UA (1) |
G |
the price which the
non- monetary consideration received or accruing as a result of the transfer
represented by property, other than immovable property, which is not referred
to in rule 11UA (1) would fetch if sold in the open market on the basis of
the valuation report obtained from a registered valuer, in respect of
property; |
|
D |
the value adopted or assessed
or assessable by any authority of the Government for the purpose of payment
of stamp duty in respect of the immovable property |
H |
the value adopted or assessed
or assessable by any authority of the Government for the purpose of payment
of stamp duty in respect of the immovable property in case the non- monetary
consideration received or accruing as a result of the transfer is represented
by the immovable property. |
|
L |
book value of liabilities as
appearing in the books of accounts of the undertaking or the division
transferred by way of slump sale, but not including the following amounts
which relates to such undertaking or division, namely: — (i)
the paid-up capital in respect of equity shares; (ii)
the amount set apart for payment of dividends on
preference shares and equity shares where such dividends have not been
declared before the date of transfer at a general body meeting of the
company; (iii)
reserves and surplus, by
whatever name called, even if the resulting figure is negative, other than
those set apart towards depreciation; (iv)
any amount representing provision for taxation,
other than amount of income tax paid, if any, less the amount of income tax
claimed as refund, if any, to the extent of the excess over the tax payable
with reference to the book profits in accordance with the law applicable
thereto; (v)
any amount representing provisions made for
meeting liabilities, other than ascertained liabilities; (vi)
any amount representing contingent liabilities
other than arrears of dividends payable in respect of cumulative preference
shares. |
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