Rule 40D - Valuation of specified security not being an equity share in the company - Income-tax Rules, 1962

1 [40D. Valuation of specified security not being an equity share in the company. - For the purposes of clause (ba) of sub-section (1) of section 115WC, the fair market value of any specified security, not being an equity share in a company, on the date on which the option vests with the employee, shall be such value as determined by a merchant banker on the specified date. Explanation.- For the purposes of this rule, 'merchant banker' and 'specified date' shall have the meanings assigned to them in clause (b) and clause (e) respectively of sub-rule (4) of rule 40C. ] --------------------------------- Notes : 1. Has been inserted vide Notification No. 11/2008 dated 18/1/2008 w.e.f. 01-04-2008