9911796707
TMI BlogAmendment of schedule IIX X X X Extracts X X X X X X X X Extracts X X X X ..... inserted, namely :- '2. Quoted shares and debentures of companies. - The value of an equity share or a preference share in any company or a debenture of any company which is a quoted share or a quoted debenture shall be taken as the value quoted in respect of such share or debenture on the date on which the gift was made or where there is no such quotation on such date, the quotation on the date closest to such date and immediately preceding such date. Explanation : The words and expressions used in this rule and rules 3 to 7 but not defined and defined in rule 2 of Schedule III to the Wealth-tax Act shall have the meanings respectively assigned to them in rule 2 of that Schedule. 3. Special provision for quoted shares of companies. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vidend 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 said 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 date on which the gift was made or, in a case where the accounting year of the company does not end on that date, for not less than three continuous accounting years ending on a date immediately before the date on which the gift was made, the paid-up value or, as the case may be, the adjusted paid-up value shall be reduced - (a) in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of all the liabilities as shown in the balance-sheet of such company shall be deducted from the value of all its assets shown in that balance-sheet; the net amount so arrived at shall be divided by the total amount of its paid-up equity share capital as shown in the balance-sheet; the result multiplied by the paid-up value of each equity share shall be the break-up value of each unquoted equity share, and an amount equal to eighty per cent. of the break-up value so determined shall be the value of the unquoted equity share for the purposes of this Act. (3) For the purposes of sub-rule (2), - (a) the following amounts shown as assets in the balance-sheet shall not be treated as assets, namely :- (i) any amount paid as advance tax u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diately preceding that date, and, in the absence of both, the balance-sheet drawn up on a date immediately after the date on which the gift was made. 6. Unquoted equity shares in investment companies. - (1) Subject to rule 7, the value of an unquoted equity share in an investment company shall be determined in the manner specified in sub-rule (2). (2) The value of all the liabilities as shown in the balance-sheet of such company shall be deducted from the value of all its assets shown in that balance-sheet; the net amount so arrived at shall be divided by the total paid-up equity share capital of the company as shown in the balance-sheet, and the result multiplied by the paid-up value of each equity share shall be the value of the unquo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) For the purpose of sub-rule (1), the aggregate value of all the equity shares in an interlocked company shall be arrived at by multiplying the maintainable profits of such company by - (a) the fraction 100/8.5, in a case where the gross total income of the company consists, to the extent of not less than 51 per cent. of income chargeable under the head "Income from house property" under the Income-tax Act; or (b) the fraction 100/10, in the case of any other interlocked company, and the resultant amount divided by the number of such equity shares shall be the value of such of an equity share in such company. (3) The maintainable profits of the company, for the purpose of sub-rule (2), shall be computed in the following m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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