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Rule 40D of Income Tax Rules 1962: Valuation of specified security not being

Rule 40D : Valuation of specified security not being an equity share in the company
(Part VIIC - Fringe Benefit Tax FBT)

For the purposes of clause (ba) of sub-section (1) of section 115WC, the fair market value of any specified security, not being an equity share in a company, on the date on which the option vests with the employee, shall be such value as determined by a merchant banker on the specified date.

Explanation.—For the purposes of this rule, "merchant banker" and "specified date" shall have the meanings assigned to them in clause (b) and clause (e) respectively of sub-rule (4) of rule 40C.

Extra Notes for Readers:

- Rule 40D was introduced by the Income Tax (2nd Amendment) Rules, 2008, w.e.f. 1st Apr. 2008

Check at Income Tax Dept. official site for latest version of the Rule.

This page was created/last updated on 17th October 2016.

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