Engineering & Financial Consultancy Services , Valuation Service Company
Valuation for Capital Gain Purposes in India: Understanding the Significance Introduction- Valuation plays a crucial role in determining capital gains in India. Capital gains tax is levied on the profit earned from the sale of capital assets, such as real estate, stocks, or mutual funds. The accuracy of the valuation becomes paramount to ensure fair taxation and compliance with the laws of the land. In this article, we will delve into the importance of valuation for capital gain purposes in India and explore the key factors to consider in the valuation process. Determining Fair Market Value- For capital gains taxation, the fair market value of the asset is considered at the time of its transfer. The fair market value represents the price that the asset would reasonably fetch in an open market transaction between a willing buyer and a willing seller. In India, the Income Tax Act provides guidelines for determining the fair market value based on different types of assets. Rea...