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[Cites 0, Cited by 0] [Section 3] [Entire Act]

Union of India - Subsection

Section 3(1) in The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015

(1)For the purposes of sub-section (2) of Section 3 of the Act, the fair market value of the assets shall be determined in the following manner, namely:-
(a)value of bullion, jewelery or precious stone shall be the higher of,-
(I)its cost of acquisition; and
(II)the price that the bullion, jewelery or precious stone shall ordinarily fetch if sold in the open market on the valuation date for which the assessee may obtain a report from a valuer recognized by the Government of a country or specified territory outside India or any of its agencies for the purpose of valuation of bullion, jewelery or precious stone under any regulation or law;
(b)valuation of archaeological collections, drawings, paintings, sculptures or any work of art (hereinafter referred to as artistic work) shall be the higher of,-
(I)its cost of acquisition; and
(II)the price that the artistic work shall ordinarily fetch if sold in the open market on the valuation date for which the assessee may obtain a report from a valuer recognized by the Government of a country or specified territory outside India or any of its agencies for the purpose of valuation of artistic work under any regulation or law;
(c)valuation of shares and securities,-
(I)the fair market value of quoted share and securities shall be the higher of,-
(i)its cost of acquisition; and
(A)the average of the lowest and highest price of such shares and securities quoted on any established securities market on the valuation date; or
(B)where on the valuation date there is no trading in such shares and securities on any established securities market, average of the lowest and highest price of such shares and securities on any established securities market on a date immediately preceding the valuation date when such shares and securities were traded on such securities market;
(II)the fair market value of unquoted equity shares shall be the higher of,-
(i)its cost of acquisition; and
(ii)the value, on the valuation date, of such equity shares as determined in the following manner, namely:-
(ii)the price as determined in the following manner, namely:-
the fair market value of unquoted equity shares =| (A+B-L)(PE)| x (PV).
where,A = book value of all the assets (other than bullion, jewelery, precious stone, artistic work, shares, securities and immovable property) as reduced by,- (i) any amount of income-tax paid, if any, less the amount of income-tax refund claimed, if any, and (ii) any amount shown as asset including the unamortised amount of deferred expenditure which does not represent the value of any asset;B = fair market value of bullion, jewelery, precious stone, artistic work, shares, securities and immovable property as determined in the manner provided in this rule;L = book value of liabilities, but not including the following amounts, namely:-
(i)the paid-up capital in respect of equity shares;
(ii)the amount set apart for payment of dividends on preference shares and equity shares;
(iii)reserves and surplus, by whatever name called, even if the resulting figure is negative, other than those set apart towards depreciation;
(iv)any amount representing provision for taxation, other than amount of income tax paid, if any, less the amount of income-tax claimed as refund, if any, to the extent of the excess over the tax payable with reference to the book profits in accordance with the law applicable thereto;
(v)any amount representing provisions made for meeting liabilities, other than ascertained liabilities;
(vi)any amount representing contingent liabilities other than arrears of dividends payable in respect of cumulative preference shares;
PE = total amount of paid up equity share capital as shown in the balance-sheet;PV = the paid up value of such equity shares;
(III)the fair market value of unquoted share and security other than equity share in a company shall be the higher of,-
(i)its cost of acquisition; and
(ii)the price that the share or security shall ordinarily fetch if sold in the open market on the valuation date for which the assessee may obtain a report from a valuer recognized by the Government of a country or specified territory outside India or any of its agencies for the purpose of valuation of share and security under any regulation or law;
(d)the fair market value of an immovable property shall be higher of,-
(I)its cost of acquisition; and
(II)the price that the property shall ordinarily fetch if sold in the open market on the valuation date for which the assessee may obtain a valuation report from a valuer recognized by the Government of a country or specified territory outside India in which the property is located or any of its agencies for the purpose of valuation of immovable property under any regulation or law;
(e)value of an account with a bank shall be,-
(I)the sum of all the deposits made in the account with the bank since the date of opening of the account; or
(II)where a declaration of such account has been made under Chapter VI and the value of the account as computed under sub-clause (I) has been charged to tax and penalty under that Chapter, the sum of all the deposits made in the account with the bank since the date of such declaration:
Provided that where any deposit is made from the proceeds of any withdrawal from the account, such deposit shall not be taken into consideration while computing the value of the account.
(f)value of an interest of a person in a partnership firm or in an association of persons or a limited liability partnership of which he is a member shall be determined in the manner specified in clause (g).
(g)The net asset of the firm, association of persons or limited liability partnership on the valuation date shall first be determined and the portion of the net asset of the firm, association of persons or limited liability partnership as is equal to the amount of its capital shall be allocated among its partners or members in the proportion in which capital has been contributed by them and the residue of the net asset shall be allocated among the partners or members in accordance with the agreement of partnership or association for distribution of assets in the event of dissolution of the firm or association, or, in the absence of such agreement, in the proportion in which the partners or members are entitled to share profits and the sum total of the amount so allocated to a partner or member shall be treated as the value of the interest of that partner or member in the partnership or association.
Explanation. - For the purposes of this clause the net asset of the firm, association of persons or limited liability partnership shall be (A + B - L), which shall be determined in the manner provided in sub-clause (II) of clause (c).
(h)valuation of any other asset shall be higher of,-
(I)its cost of acquisition or the amount invested; and
(II)the price that the asset would fetch if sold in the open market on the valuation date in an arm's-length transaction.