Section 56-Recent ammendment/valuation of shares

This query is : Resolved 

06 August 2009 Respected Professional Friends,

As per the recent amendment to Sec.56,".As per the proposal, shares received without consideration or for inadequate consideration, the aggregate fair market value of such property over and above the consideration, if any, paid, shall be considered as income of the recipient.”

So my question is,” If a person transfers the shares of a PRIVATE LIMITED COMPANY, will this section be applicable; if applicable, what will be the rule for valuation of shares? Means how can the fair market value of the shares be found?
Thanks.

09 October 2009 well the provision is amended i guess wef 1/10/09 which includes property and property includes shares .

Since the method of valuation is not defined , i guess u can take the book value which will be the deemed fair market value of the shares ( private ltd co )



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