Section 56(2)(vii) (c) - transfer of shares

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Stephie Rodrigues (Querist)
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12 January 2017 Is there any methodology for arriving at valuation guidelines in case of transfer of shares between 2 resident individuals of a company which is closely held and unlisted. Please note that the company in question has immovable property (office shown as investment property) and bank balance, there is no other asset or liability.

Please guide.

ND (Expert)
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13 January 2017 Please refer to the valuation method prescribed under Rule 11UA(1)(b). If the valuation is done as per this method and the shares are transferred at this value then there is no tax under Section 56.