What is Rule 11UA valuation?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerRule 11UA is the income-tax rule that sets out how to value unlisted shares — mainly the Net Asset Value (NAV) method and the Discounted Cash Flow (DCF) method. It was central to angel-tax assessments; even after angel tax’s removal, 11UA valuations are still used for share pricing and compliance.

NAV vs DCF

NAV values shares on the company’s net assets — simple, conservative. DCF values them on projected cash flows — suits growth startups but must be backed by realistic projections.

Where it's still used

For pricing fresh share issues, for FEMA pricing on foreign investment, and to support the price if questioned. A registered valuer or merchant banker prepares it.

NRI Taxation

← Back to all questions

Talk to CA Vijay R Singh

Need a defensible valuation for your share issue? You can message him directly, or book a short call to talk through your situation.

Book a 15-minute call
Message on WhatsApp
Email your query

This answer is general information for NRIs, not tax advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.