Section 56 / Rule 11UA (Income Tax)
Used when shares are issued or transferred at non-arm's-length to avoid 56(2) tax.
- DCF or NAV (assesse's choice)
- CA or Merchant Banker signs
- Used at issue / transfer / gift
- Latest 11UA amendments tracked
Valuation Reports
Valuation reports - for tax, FEMA, M&A and ESOPs.
A valuation report is a written opinion of fair value, signed by a registered valuer or merchant banker, used for income-tax (Section 56), FEMA (foreign investment / outbound), Companies Act (issue / transfer of shares), ESOP perquisite (Section 17(2)) and M&A diligence. Each route has its own methodology and signatory rules.
Qualified CA / CS partners7-15 working daysBest for: Startups, M&A, ESOPs, FEMA filings, IT scrutiny
Starting at
₹14,999 onwards
Valuation Report
Startups, M&A, ESOPs, FEMA filings, IT scrutiny
DCF / NAV / CCM methods
Rule 11UA (Section 56) valuation
FEMA valuation (Cat-I Merchant Banker / CA)
Registered Valuer (Companies Act)
Timeline
7-15 working days
What it is
Valuation Report, explained in plain English.
An Indian valuation can sit under five regimes - Income Tax Rule 11UA (for fair-value calculation under Section 56(2)(x) / (viib)), FEMA / RBI (cross-border equity at fair value, signed by a SEBI-registered Cat-I Merchant Banker or CA), Companies Act (issue, transfer, conversion of shares - signed by an IBBI Registered Valuer), ESOP perquisite (Section 17(2)) and M&A (private valuation report). The signatory and the methodology change with the regime, even if the underlying business is the same.
TL;DR
Pick the regime - IT (Rule 11UA), FEMA (Cat-I MB/CA), Companies Act (Registered Valuer), ESOP (Section 17(2)). Methodology = DCF / NAV / CCM, but the signatory and report format change.
Key terms
The vocabulary you'll see on the portal.
Rule 11UA
Income Tax fair-value rules - DCF or NAV for unlisted shares under Section 56.
Registered Valuer
IBBI-registered professional - mandatory for Companies Act valuations from Feb 2019.
Cat-I Merchant Banker
SEBI-registered MB - mandatory signatory for FEMA inbound / outbound investment valuations.
DCF / NAV / CCM
Discounted Cash Flow / Net Asset Value / Comparable Companies' Multiples - the three core methods.
Routes & scenarios
Match the situation to the right fix.
FEMA / RBI
Used for foreign investment, ODI, FDI - to ensure the price is fair under FEMA rules.
- Cat-I Merchant Banker / CA signs
- Internationally accepted methods
- Form FC-GPR / FC-TRS attaches the report
- Higher of book value / DCF / negotiated
Companies Act (Registered Valuer)
Mandatory for issue of further shares, share-based payments, NCLT proceedings, mergers.
- IBBI Registered Valuer signs
- Detailed methodology + sensitivity
- Used in PAS-3, NCLT, valuation of intangibles
- Independent of management
ESOP perquisite (Section 17(2))
FMV at exercise to compute the taxable perquisite for ESOP holders.
- Cat-I Merchant Banker / CA
- Refreshed at every exercise window
- Used by employer to deduct TDS at exercise
- Aligned with grant-stage 11UA position
The process
Valuation Report - from kickoff to confirmation.
01
Scope
Regime confirmed (IT / FEMA / Companies / ESOP), method chosen, signatory engaged.
02
Data room
Audited financials, business plan, peer set, debt schedule, working capital - collected and validated.
03
Modelling
DCF / NAV / CCM built; sensitivity tables, control / minority discount, illiquidity premium added.
04
Sign + deliver
Signed report with annexures, executive summary and methodology note - ready to file with the relevant authority.
Documents required
What we'll need from you.
Upload via our secure portal. We pre-check every scan before filing - cuts portal rejections by ~90%.
Last 3 years' audited financials
Current year management accounts
Cap table + shareholding pattern
Business plan / 3-5 year projections
Peer set + market data
Term sheets / SHA / SSA (if applicable)
Latest tax filings
Valuation Report FAQ
Common questions, answered by partners.
Still unsure if Valuation Report is right for your case? Book a free 20-minute consult - a senior CA / CS will walk you through your specifics.
Still have questions?
Book a free 20-minute consult with a senior partner - we'll walk through your case and outline next steps.
Talk to a partner →Depends on the regime. Income Tax (Rule 11UA) - CA or Merchant Banker. FEMA - Cat-I Merchant Banker (or CA for some specified categories). Companies Act - IBBI Registered Valuer. ESOP - Cat-I Merchant Banker / CA. We engage the right signatory based on your use-case.
Ready when you are
Let's get your Valuation Report sorted this week.
A senior CA / CS will get on a call with you, confirm scope and start the work - usually within 24 hours.