Enter your company's balance-sheet figures and this free calculator returns the fair market value of unquoted equity shares under the Rule 11UA Net Asset Value method — FMV = (A + B + C + D − L) × PV/PE — giving the net asset base, total FMV and value per share. It is the basis for Section 56(2)(x) (inadequate consideration) and Section 50CA (transfer below FMV). Angel tax under 56(2)(viib) was abolished from FY 2025-26. This is an indicative tool — a CA should confirm the asset adjustments and valuation date.
Calculate FMV under Rule 11UA (NAV Method)
Enter amounts in ₹ on the valuation date. Use fair values for B, C and D (not book values).
Assets
Book value of assets excluding B/C/D items, less advance tax & deferred tax asset.
Enter asset values (A–D) as on the valuation date. A is the adjusted book value of general assets; B, C and D are the fair values of jewellery/art, shares/securities and immovable property respectively.
Enter liabilities (L), excluding paid-up capital, reserves set apart for dividends, provision for tax and contingent liabilities.
Enter total paid-up equity capital (PE) and face value so the tool can work out the number of shares.
Click Calculate. You get the net asset base, the FMV per share and a full breakdown. Leave PV blank to value the whole company, or enter it to value a specific block.
For a market or DCF-based view of value (used for ESOPs and fundraising rather than the statutory NAV), see the ESOP valuation calculator. For the resulting tax on a transfer, use the capital gains calculator.
CA Tip: The most common errors are using book values instead of fair values for property and securities, and using the balance-sheet date instead of the valuation date. Both can materially change the FMV — have a CA confirm the adjustments.
The Rule 11UA NAV Formula
Rule 11UA(1)(c)(b) of the Income-tax Rules prescribes the Net Asset Value method for unquoted equity shares:
FMV = (A + B + C + D − L) × PV / PE
Per share = (A + B + C + D − L) ÷ Total paid-up equity shares
The bracket is the company's net asset base on the valuation date. Multiplying by PV/PE apportions it to the block of shares being valued; dividing by the number of shares gives the value per share. The method is purely balance-sheet driven, which makes it predictable but sensitive to how the asset and liability figures are adjusted.
What A, B, C, D and L Mean
Term
Meaning
A
Book value of all assets other than jewellery, artistic work, shares/securities and immovable property — reduced by advance income tax paid (net of refund) and any deferred tax asset / unamortised expenses.
B
Fair market value of jewellery and artistic work per a registered valuer's report.
C
Fair market value of shares and securities held (as determined under Rule 11UA).
D
Stamp-duty value (circle rate) of immovable property.
L
Book value of liabilities, but excluding paid-up capital, amounts set apart for dividends, reserves (other than depreciation), provision for tax (net), provisions for unascertained liabilities and contingent liabilities.
PV
Paid-up value of the equity shares being valued.
PE
Total paid-up value of the equity share capital as shown in the balance sheet.
Because B, C and D require fair values rather than book values, an accurate Rule 11UA computation often needs supporting valuation inputs for property and investments, typically from a registered valuer recognised by the ICAI. The net worth calculator can help you assemble the asset and liability base first.
Need Help with Rule 11UA Share Valuation?
Patron Accounting LLP supports founders, investors and companies valuing unquoted shares for tax — for Pune, Mumbai, Delhi, Gurugram and pan-India clients.
When Rule 11UA Applies (After Angel Tax Abolition)
Angel tax under Section 56(2)(viib) — which taxed share premium received by a closely held company above FMV — was abolished from FY 2025-26 by the Finance Act 2024. Share issues at a premium from 1 April 2025 no longer attract that charge, regardless of DPIIT-recognition status. Rule 11UA still matters for two live provisions:
Section 50CA — on transfer of unquoted shares for less than FMV, the FMV (per Rule 11UAA, using the same Rule 11UA formula with the transfer date as valuation date) is deemed to be the sale consideration for capital gains.
Section 56(2)(x) — a recipient who receives shares for no or inadequate consideration is taxed on the shortfall against FMV under "income from other sources".
So even after angel tax, both the buyer and seller of unquoted shares need the Rule 11UA figure to price a transfer correctly and avoid a deemed-income adjustment. The capital-gains and other-source effects are reported through your return on the income-tax portal, and where a registered-valuer report is used it follows the framework administered by the IBBI under the Ministry of Corporate Affairs. See Patron's Rule 11UA valuation guide for the detailed position.
NAV Method vs DCF Method
Aspect
NAV — Rule 11UA(1)(c)(b)
DCF — Rule 11UA(2)
Basis
Balance-sheet net assets
Projected future cash flows
Report needed
No merchant-banker report
Merchant-banker report mandatory
Typical use
Share transfers (50CA, 56(2)(x))
Was used for share issues (angel tax)
Predictability
High — formula-driven
Lower — assumption-sensitive
This calculator implements the NAV method. With angel tax gone, the NAV method is the common route for the remaining Rule 11UA use cases. For a DCF-based valuation — relevant to fundraising, ESOPs or where a forward-looking value is needed — a merchant banker's report is required; Patron also offers ESOP valuation services.
Note: The NAV figure can differ significantly from a negotiated commercial price. It is a statutory floor/reference for tax, not necessarily the deal value — but pricing below it can trigger Section 50CA or 56(2)(x).
Frequently Asked Questions on Rule 11UA FMV
Rule 11UA of the Income-tax Rules, 1962 prescribes how to compute the fair market value of unquoted equity shares for income-tax purposes. The Net Asset Value method in Rule 11UA(1)(c)(b) uses the formula FMV = (A + B + C + D − L) × PV/PE, where the asset components are adjusted to fair values and liabilities deducted, then apportioned per share. The rule underpins valuation for Section 56(2)(x) and Section 50CA.
The NAV-method formula is FMV = (A + B + C + D − L) × PV/PE. A is the book value of assets other than jewellery, art, shares/securities and immovable property, reduced by income tax paid and deferred items. B is the fair value of jewellery and artistic work. C is the fair value of shares and securities. D is the stamp-duty value of immovable property. L is liabilities. PV is the paid-up value of the shares valued and PE the total paid-up equity capital.
A is the adjusted book value of general assets (excluding the specified assets), reduced by advance income tax and deferred tax assets. B is the fair value of jewellery and artistic work per a valuation report. C is the fair value of shares and securities held. D is the stamp-duty value of immovable property. L is the liabilities, excluding paid-up capital, dividend reserves, provision for tax and contingent liabilities. PV is the paid-up value of the block of shares being valued, and PE is the total paid-up equity share capital.
Angel tax under Section 56(2)(viib) was abolished from FY 2025-26 by the Finance Act 2024, so share issues at a premium no longer attract that charge regardless of DPIIT status. Rule 11UA still applies to Section 50CA, which deems the FMV as sale consideration on transfer of unquoted shares below FMV, and to Section 56(2)(x), which taxes a recipient who receives shares for inadequate consideration. The NAV formula remains the common basis.
The NAV method under Rule 11UA(1)(c)(b) values shares from the balance sheet using the (A+B+C+D−L) × PV/PE formula and needs no merchant-banker report. The DCF method under Rule 11UA(2) values shares on projected cash flows and requires a merchant-banker report. DCF was mainly used for share issuances under the now-abolished angel tax; for share transfers under Section 50CA and 56(2)(x), the NAV method is the typical route.
No. The NAV method under Rule 11UA(1)(c)(b) is a formula-driven computation from the company's balance sheet and does not require a merchant-banker report. A merchant-banker report is mandatory only for the DCF method under Rule 11UA(2). That said, a Chartered Accountant should verify the asset adjustments — especially the fair values of property, securities and jewellery — before the figure is relied on for a transaction or filing.
The fair market value is determined as on the valuation date, which is the date of the transaction — for example the date of transfer for Section 50CA or the date of receipt for Section 56(2)(x). The asset values used should reflect that date rather than the balance-sheet date, which can require adjusting the latest audited figures to the valuation date. Using the correct date is a common point of dispute, so it should be documented carefully.
First compute the net asset base (A + B + C + D − L). Then multiply by PV/PE, where PV is the paid-up value of the shares being valued and PE is the total paid-up equity capital. For a per-share value, divide the net asset base by the total number of paid-up equity shares. This calculator shows both the net asset base and the resulting value per share so you can see how the apportionment works.
Section 50CA provides that when unquoted shares are transferred for less than their fair market value, the FMV is deemed to be the full value of consideration for computing capital gains. Rule 11UAA specifies that this FMV is determined under the same Rule 11UA formula, taking the date of transfer as the valuation date. So a seller transferring unquoted shares below FMV is taxed as if they received the FMV, making the Rule 11UA figure important.
No. This tool applies the NAV formula to the figures you enter, which is useful for a quick estimate and for sense-checking a transaction. A reliable Rule 11UA valuation needs correct asset adjustments — fair values of property and securities, exclusion of the right liabilities, and the correct valuation date. A Chartered Accountant or registered valuer should prepare or review the valuation before it is relied on for tax or a deal.
Yes, the Patron Accounting FMV Rule 11UA Calculator is completely free with no signup required. All calculations run in your browser and nothing is stored on our servers. It computes the net asset base, total FMV and per-share fair market value of unquoted equity shares using the Rule 11UA NAV formula, so you can sense-check Section 56(2)(x) and Section 50CA positions before consulting a professional.
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