Alerts & Updates 28th Sep 2023

CBDT notifies Valuation Rules for unquoted equity shares and CCPS issued by Indian unlisted companies

Authors

Rahul Charkha Partner | Pune
Arpita Choudhary Principal Associate | Pune
Saurabh Bora Associate | Pune
Dikshita Rakhecha Associate | Pune

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In a significant development, the Central Board of Direct Taxes (CBDT) has issued Notification No. 81/2023 dated September 25, 2023, announcing an amendment to Rule 11UA of the Income-tax Rules, 1962. The notified Rule 11UA provides valuation mechanism for unquoted equity shares and compulsorily convertible preference shares, issued by Indian unlisted companies to residents and non-residents. This is a significant consideration for inbound investments in India.

This news alert aims at simplifying the Notified Rules and highlighting key related aspects.

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