Section 56 2 viib Valuation Report in Bihar
Last updated: 17 Oct 2026
Quick Answer: Section 56(2)(viib) angel tax does not apply from AY 2025-26 onward. Virtual Auditor assists businesses in Bihar 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 Patna. Pincode: 800001.
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 Bihar?
ROC-cum-OL Patna has jurisdiction over companies with a registered office in Bihar. 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 Bihar?
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 Bihar. Stamp duty on the share purchase agreement itself follows the Indian Stamp Act, 1899 (Bihar Amendment).
Do you have an office in Bihar?
No. Bihar is served remotely from our Mumbai office: 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 Bihar — Section 56(2)(viib)
Bihar combines agriculture services, education, healthcare, and growing trading and services activity centred in Patna.
Get Started — Free 30-Minute Consultation
To discuss your specific Bihar 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 Bihar
For startups and closely held companies in Bihar, the Section 56(2)(viib) computation under Rule 11UA(2) interlocks with three local touchpoints: assessing-officer charge under ITAT Patna appellate jurisdiction, AD-bank reporting under SBI Patna lead-bank with PNB, BoB also providing AD-I services; FEMA filings of any complexity often referred to Kolkata AD branches, and the FEMA pricing regime where any non-resident subscriber is on the cap table. Stamp duty on the underlying allotment instruments follows the Bihar schedule — 0.10% of authorised capital on MOA, fixed ₹500 on AOA (Bihar schedule) — which adds up materially on large authorised-capital rounds.
The economic mix of Bihar runs across small-scale engineering, cement (Bhojpur, Rohtas), sugar — sectors that consistently dominate the regulatory case-load and the profile of the engagements we field from this jurisdiction. Notable industrial enclaves include food processing parks at Begusarai and Muzaffarpur. On the AD-Bank side, SBI Patna lead bank with PNB, Bank of Baroda also providing AD-I services; FEMA filings of any complexity often referred to Kolkata AD branches.
Bihar's Industrial Investment Promotion Policy 2016 (renewed 2022) offers up to 30% capital subsidy for textile units and 15% for general manufacturing, plus reimbursement of stamp duty and electricity duty.
Choice of Valuation Method — Bihar Sector Context
For companies in heavy-asset sectors prevalent in Bihar (e.g. agro-processing (rice, maize, makhana — Bihar accounts for 85% of India's makhana output)), 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 Patna
From our practice across ITAT Patna 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 Bihar Cap Tables with Non-Residents
For Bihar-based companies, the AD-bank channel becomes the operational reporting loop: typically SBI Patna lead-bank with PNB, BoB also providing AD-I services.
Engagement — Bihar 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 Patna. Free 30-minute consultation: +91 99622 60333.
Bihar: compliance facts for section 56 2 viib valuation report
Bihar's corporate activity centres on Patna's trading houses, the Hajipur and Bihta industrial areas, agro-processing of rice, maize and makhana, and large public infrastructure spending. The Bihar Industrial Investment Promotion Policy gives capital and interest subsidies to new units, and the state has one of India's fastest-growing GST registration bases from a low base. Companies file with ROC-cum-OL Patna and litigate before the Patna High Court, with NCLT matters heard at Kolkata. For section 56 2 viib valuation report this means the company’s filings go to ROC-cum-OL Patna and tribunal matters to NCLT Kolkata; 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 Bihar?
| Registrar of Companies | ROC-cum-OL Patna |
|---|---|
| NCLT bench | NCLT Kolkata |
| 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 | Patna High Court |
| State startup policy | Bihar Startup Policy, 2022 |
| Startup nodal agency | Startup Bihar / Department of Industries |
| Nearest Virtual Auditor office | Mumbai office — Workafella, AK Estate, SV Road, off Veer Savarkar Flyover, Goregaon West, Mumbai 400062 (about 1,741 km by road from Bihar) |
Bihar companies file with ROC-cum-OL Patna; writ remedies lie before the Patna High Court; company-law and insolvency matters go to the NCLT Kolkata.
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.