Tax department simplifys share valuation method

Discounted cash flow yardstick for unlisted firms to boost domestic PE industry the reason is income tax department. The income tax department has allowed use of the discounted cash flow method for determining ‘fair market value’ of unquoted equity shares. For this purpose, the income tax rules have now been amended by the Central Board of Direct Taxes (CBDT).
Discounted cash flow method is now a recognised option available for ascertaining the fair market value. Till date, the fair market

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