Rule 1C - Market value of unquoted preference shares - Wealth Tax Rules, 1957

Market value of unquoted preference shares. 1 1C. [Omitted by the Wealth-tax (Second.Amendment) Rules, 1989, w.e.f.1-4-1989.] --------------------- Notes:- 1. Before omission rule 1C it was read as under : (1) Subject to the provisions of sub-rule (2) the market value of an unquoted preference share of any company shall ( a ) where the preference share is issued before the valuation date at a rate of dividend of not less than eight per cent, be the paid-up value of such share; and ( b ) where the preference share is issued before the valuation date at a rate of dividend of less than eight per cent, be the adjusted paid-up value of such share. (2) Where no dividend has been paid in respect of an unquoted preference share by any company continuously for not less than three accounting years ending on the valuation date or in a case where the accounting year of that company does not end on the valuation date, for not less than three continuous accounting years ending on a date immediately before the valuation date, the paid-up value or the adjusted paid-up value, as the case may be, shall be reduced ( a ) in the case of non-cumulative preference share, as indicated in the Table below : THE TABLE Number of accounting years ending on the valuation date or in a case where the accounting year does not end on the valuation date, the number of accounting years ending on a date, immediately preceding the valuation date, for which no dividend has been paid. Rate of deduction 1 2 Three years Four years Five years Six years and above 10 per cent of the paid-up value or the adjusted paid-up value, as the case may be 20 -do- 30 -do- 40 -do- (b) in the case of a cumulative preference share, one-half of the rates specified in the aforesaid Table . Explanation . For the purposes of this rule, adjusted paid-up value , in relation to a preference share, means an amount which bears to the paid-up value of the preference share the same proportion as the stipulated rate of dividend [being the rate of dividend on the preference share specified in the terms of issue of such share, and in a case where such dividend is required to be increased under the provisions of section 3 of the Preference Shares (Regulation of Dividends) Act, 1960 (63 of 1960), the rate of dividend as so increased] on such shares bears to the rate of eight per cent.