FMV in slump sale transaction – Rule 11UAD (IT Notification G.S.R. 338 (E) Dated 24.05.2021)

• Amended section provides that FMV of the capital assets transferred shall be deemed to be the consideration

• New Rule 11 UAD provides method of working out FMV which is higher of below 2 formula
• • a)Formula A – similar to Rule 11UA calculation of FMV restricting to an Undertaking
  • b) Formula B – Monetary benefit + FMV of non monetary consideration

• FMV of non monetary consideration is as follows

a) For assets listed in Rule 11UA – FMV as per rule 11UA
b) For assets not listed in Rule 11UA – as per valuers report
c) For immovable property – stamp duty value

• Valuation date will be date of slump sale

Click on the link to download notification Slump Sale Amendment Rules Notification G.S.R. 338 (E) Dated 24.05.2021