The Indian Central Board of Direct Taxes has issued Notification No. 61/2017, which includes new rules for the determination of the fair market value of unquoted equity shares.
As provided in the notification, the fair market value of unquoted equity shares = (A+B+C+D-L) × (PV)/(PE), where:
- A = book value of all the assets (other than jewelry, artistic work, shares, securities and immovable property) in the balance-sheet as reduced by,
- any amount of income-tax paid, if any, less the amou…