India's Central Board of Direct Taxes Changes Rules on Share Valuations for Angel Tax

On 26 September 2023, India's Central Board of Direct Taxes (CBDT) issued a release on changes to rule 11UA of the Income Tax Rules 1962 regarding the valuation of shares. Rule 11UA is applied in relation to Section 56(2)(viib) of the Income-tax Act 1961, which generally provides that consideration received for the issue of shares that exceeds the fair market value of the shares is chargeable to income tax under the head "Income from other sources", which is known as the "angel tax". The cha…