Where unlisted equity shares are transferred for a consideration below their FMV computed under Rule 11UAE, Section 50CA deems the FMV to be the full value of consideration for capital gain computation purposes.
The Rule 11UAE FMV for unlisted equity shares is the Net Asset Value (NAV) formula:
Where the company’s assets include significant works of art, jewellery, or real property, the Government Approved Capital Gain Valuer’s certificates for those underlying assets feed directly into the NAV computation.
UNLISTED SHARE VALUATION Get Expert Advice Section 50CA · Rule 11UAE · Underlying Asset Valuation +91-9999992343The value of an unlisted company can depend materially on the assets appearing on its balance sheet. Where those assets include art, jewellery or significant property, their independently established FMV becomes an important input into the Rule 11UAE NAV computation.
Significant real property held by the company can form part of the asset base used in the Rule 11UAE NAV computation, requiring an appropriate Government Approved Valuation of the underlying property.
Where corporate balance-sheet assets include valuable jewellery, the underlying FMV certificate becomes an input into the overall NAV exercise and ultimately the unlisted share valuation.
Company-held paintings, artworks and other significant collections may require specialist valuation so their fair market value can be appropriately incorporated into the underlying asset computation.
A2Z Valuers’ multi-category Section 34AB registration — Category I property, Category V shares, Category VII jewellery and Category VIII art — allows the practice to produce the underlying asset certificates and integrate them into the NAV computation under a single multi-asset engagement.
The IBBI Registered Valuer for the SFA (Securities or Financial Assets) asset class uses A2Z Valuers’ individual asset certificates as inputs to the overall unlisted share valuation.
Discuss the unlisted share transfer, underlying property, jewellery or art holdings with a valuation practice capable of addressing the asset-level inputs and the overall capital gain valuation requirement.