Rule 11UA outlines the process for calculating the Fair Market Value (FMV) of shares issued under the provision of income tax.
HOW CAN RULE 11UA IMPACT YOUR STARTUP?
1. POSITIVE IMPACTS
2. POTENTIAL CHALLENGES
a. Clarity & Transparency
b. Increased Investment Potential
c. Reduced Disputes
a. Compliance Requirements
b. Choosing the Right Method
WHY CHOOSING THE RIGHT METHOD IS IMPORTANT FOR 11UA VALUATION?
1. DISCOUNTED CASH FLOW (DCF)
2. VENTURE CAPITAL METHOD (VCM)
3. NET ASSET VALUE (NAV)