The much-anticipated Union Budget 2024, under the Modi 3.0
government, will be presented on 23 July 2024. Globally, various
stakeholders are keenly awaiting what's in store in this
year's budget.
We have enumerated certain recommendations that the government
may consider to simplify and streamline regulations for both
businesses and individuals from a direct tax perspective.
Simplifying Valuation under Different
Regulations
The issue of shares and securities by closely held companies
falls under Section 56(2)(viib) of the Income Tax Act, 1961 (the
Act). Rule 11UA prescribes the method of valuation for these
securities. Besides income tax, the issuing company must comply
with the Companies Act, SEBI, and FEMA regulations, especially when
dealing with non-resident investors.
