- Section 50CA of the Income Tax Act 1961, prescribes provisions for calculation of full value of consideration in case of transfer of shares other than quoted shares (unquoted shares).
- Where the consideration received as a result of transfer of a capital asset, being shares of a company other than a quoted share is less than the Fair Market Value (FMV) of such share determined as per Rule 11UA of the Income Tax Rules 1962, then the FMV so determined shall be the Full Value of Consideration for the purposes of section 48.
- The provisions of this section shall not apply in case of transfer of such shares by some specified class of persons, which have been prescribed in Rule 11UAD of the Income Tax Rules 1962.
- As per Rule 11UAD of the Income Tax Rules 1962, the provisions of this section shall not apply in case of transfer of unquoted shares of a company, its subsidiary and subsidiary of such subsidiary by an assessee where
- the Tribunal on an application moved by CG (u/s 241 of the Companies Act 2013) has suspended the Board of Directors of such company and appointed new directors nominated by CG (u/s 242 of the Companies Act 2013).
AND
- share of such company and its subsidiary and subsidiary of such subsidiary has been transferred pursuant to a resolution plan approved by Tribunal u/s 242 of the Companies Act 2013.
- For the purposes of this section, quoted share means a share which is quoted on a recognized stock exchange with regularity from time to time.
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