Section 56 2 viib Valuation Report in Agra
Last updated: 14 Oct 2026
Quick Answer: Section 56(2)(viib) angel tax does not apply from AY 2025-26 onward. Virtual Auditor assists businesses in Agra with pending Section 56(2)(viib) scrutiny for AY 2024-25 and earlier. For new transactions, we assess Rule 11UA / Section 56(2)(x) valuation requirements and FEMA pricing separately, where applicable; the abolition of angel tax does not remove those requirements.
Compliance Information
ROC: ROC Kanpur. Pincode: 282001.
Indicative Fee Structure
| Service | Fee |
|---|---|
| Angel Tax Valuation | Starts from ₹35,000 + govt fees |
| Book a Consultation | 30 minutes, no obligation |
Frequently Asked Questions
Which Registrar of Companies handles filings for a company in Agra?
ROC Uttar Pradesh (Kanpur) has jurisdiction over companies with a registered office in Uttar Pradesh. Virtual Auditor files SPICe+, PAS-3, SH-7 and annual returns with that office on your behalf.
What stamp duty applies to a share transfer in Uttar Pradesh?
Stamp duty on a transfer of shares is 0.015% of the consideration under Article 62 of Schedule I to the Indian Stamp Act, 1899, as amended with effect from 1 July 2020; the rate is the same in every state, including Uttar Pradesh. Stamp duty on the share purchase agreement itself follows the Indian Stamp Act, 1899 (U.P. Amendment).
Do you have an office in Agra?
No. Agra is served remotely from our Mumbai office, about 1,241 km away: documents are exchanged online, filings are made on the MCA, GST and income-tax portals, and meetings are held by video or at that office by appointment.
Which valuation rule applies to my transaction and period, including any historical assessment?
It depends on the transaction and the tax year. Share issues made up to 31 March 2024 may still be examined under the old angel-tax provision, section 56(2)(viib), with value under Rule 11UA(2): net asset value or a merchant banker’s DCF, at the company’s option. Share issues from 1 April 2024 are outside angel tax. Shares received for less than their fair market value are taxed in the recipient’s hands (section 56(2)(x)), using the formula in Rule 11UA(1), and the seller may be taxed on fair value under section 50CA. From tax year 2026-27, the Income-tax Act, 2025 and the Income-tax Rules, 2026 apply, so the corresponding provisions must be cited. We match each transaction to its period and rule and say who must sign the report.
Angel Tax Valuation Report in Agra — Section 56(2)(viib)
Agra anchors leather, footwear, and tourism services, with strong MSME activity in handicrafts.
Why CA V. Viswanathan and Virtual Auditor for Agra?
Virtual Auditor is led by CA V. Offices in Chennai, Bangalore, and Mumbai serve clients across Uttar Pradesh and pan-India, with all engagements running on secure document-room workflows and weekly status updates.
Get Started — Free 30-Minute Consultation
To discuss your specific Agra requirement, call +91 99622 60333 or email support@virtualauditor.in. We will provide a clear scope, timeline, and fixed-fee quote within 24 hours of the consultation. References from comparable engagements available on request, subject to client confidentiality.
Section 56(2)(viib) Practice Considerations in Agra
For startups and closely held companies in Agra, the Section 56(2)(viib) computation under Rule 11UA(2) interlocks with three local touchpoints: assessing-officer charge under ITAT Lucknow / Allahabad / Agra / Varanasi appellate jurisdiction, AD-bank reporting under Noida-Greater Noida cluster runs sizeable AD-I activity (HDFC, ICICI, HSBC); Kanpur and Lucknow cover leather and sugar FEMA work; Moradabad brassware exports anchor at SBI, and the FEMA pricing regime where any non-resident subscriber is on the cap table. Stamp duty on the underlying allotment instruments follows the Agra schedule — 0.15% of authorised capital on MOA capped at ₹25 lakh (UP Stamp Act) — which adds up materially on large authorised-capital rounds.
Agra is India's leather-footwear export capital — the city accounts for about 65% of national leather-footwear output and around 28% of leather-footwear exports, anchored by Sanjay Place and Hing-ki-Mandi clusters. The Agra-Lucknow Expressway and proximity to the Yamuna Expressway plug the city directly into NCR and Lucknow logistics. Agra also hosts a heritage tourism economy regulated by the Taj Trapezium Zone (TTZ) — a Supreme Court-defined 10,400 sq km zone where industrial activity is restricted, a fact relevant for any new manufacturing setup.
The economic mix of Agra runs across carpets (Bhadohi-Mirzapur — 90% of Indian carpet exports), leather (Kanpur — among India's three leather hubs), agro-processing (sugar — UP is India's largest sugar producer) — sectors that consistently dominate the regulatory case-load and the profile of the engagements we field from this jurisdiction. Notable industrial enclaves include Moradabad EPIP, Noida SEZ. On the AD-Bank side, Noida-Greater Noida cluster runs sizeable AD-I activity (HDFC, ICICI, HSBC); Kanpur and Lucknow cover leather and sugar FEMA work; Moradabad brassware exports anchor at SBI.
Uttar Pradesh is India's largest sugar producer (about 45% of output), the largest carpet exporter, and is the only Hindi-belt state without Professions Tax; the UP Industrial Investment & Employment Promotion Policy 2022 offers up to 100% SGST reimbursement.
Choice of Valuation Method — Agra Sector Context
For companies in heavy-asset sectors prevalent in Agra (e.g. leather (Kanpur — among India's three leather hubs)), an NAV cross-check is essential because the DCF and NAV will diverge, and the assessing officer typically anchors on whichever lower figure supports a Section 56(2)(viib) addition.
Recent Assessment Patterns under ITAT Lucknow / Allahabad / Agra / Varanasi
From our practice across ITAT Lucknow / Allahabad / Agra / Varanasi appeals, the most common reasons that 56(2)(viib) additions are made — and either survived or struck down on appeal — are: (a) inadequate documentation of the projected cash-flow assumptions (Income Tax Officer challenge under Rule 11UA(2)(b) explanation); (b) absence of comparable-company cross-check in the valuation report (a soft requirement under best-practice but heavily relied on by CIT(A)); (c) cap-table inconsistency with the FC-GPR filing where a non-resident is on the round — this triggers parallel FEMA enquiry and erodes the 56(2)(viib) defence.
FEMA Pricing Interaction for Agra Cap Tables with Non-Residents
For Agra-based companies, the AD-bank channel becomes the operational reporting loop: typically Noida-Greater Noida cluster runs sizeable AD-I activity (HDFC, ICICI, HSBC).
Engagement — Agra Coverage
Reports are signed under IBBI Registered Valuer credentials (IBBI/RV/03/2019/12333) where required by statute, and supported through assessment, CIT(A), and ITAT proceedings under ITAT Lucknow / Allahabad / Agra / Varanasi. Free 30-minute consultation: +91 99622 60333.
Agra: compliance facts for section 56 2 viib valuation report
Agra's economy is leather footwear (one of India's largest clusters), tourism around the Taj corridor, cold storage and agro-trade, and a growing base of small manufacturers in the Sikandra and Foundry Nagar industrial areas. Businesses here deal with the Kanpur RoC and the Agra bench of ITAT, with the Allahabad High Court for writs. For section 56 2 viib valuation report this means the company’s filings go to ROC Uttar Pradesh (Kanpur) and tribunal matters to NCLT Allahabad; where a non-resident invests, the price is also checked against the FEMA pricing rules.
Which authorities handle section 56 2 viib valuation report for a business in Agra?
| Registrar of Companies | ROC Uttar Pradesh (Kanpur) |
|---|---|
| NCLT bench | NCLT Allahabad |
| Stamp duty on share transfer | 0.015% of consideration (Indian Stamp Act, 1899, Schedule I, Art. 62 as amended w.e.f. 1 Jul 2020 — uniform across India) |
| High Court | Allahabad High Court (Prayagraj; Lucknow Bench) |
| State startup policy | Uttar Pradesh Startup Policy, 2020 |
| Startup nodal agency | Startinup / Department of IT and Electronics, UP |
| Nearest Virtual Auditor office | Mumbai office — Workafella, AK Estate, SV Road, off Veer Savarkar Flyover, Goregaon West, Mumbai 400062 (about 1,241 km by road from Agra) |
Agra companies file with ROC Uttar Pradesh (Kanpur); writ remedies lie before the Allahabad High Court (Prayagraj; Lucknow Bench); company-law and insolvency matters go to the NCLT Allahabad.
Statutory references for this service are on the national section 56 2 viib valuation report page: https://virtualauditor.in/section-562viib-valuation-report
What has changed in the law — reviewed October 2026
- Income-tax Act, 2025 is in force from 1 April 2026; the section numbers on this page are those of the Income-tax Act, 1961, which continues to govern assessment years up to 2026-27.
- Angel tax under section 56(2)(viib) does not apply from assessment year 2025-26; a Rule 11UA valuation is still needed for section 56(2)(x), FEMA pricing and ESOP pricing.