Section 56 2 viib Valuation Report in Gujarat
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 Gujarat 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 Ahmedabad. Pincode: 382010.
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 Gujarat?
ROC Ahmedabad has jurisdiction over companies with a registered office in Gujarat. 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 Gujarat?
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 Gujarat. Stamp duty on the share purchase agreement itself follows the Gujarat Stamp Act, 1958.
Do you have an office in Gujarat?
There is no local office. Service is coordinated by 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 Gujarat — Section 56(2)(viib)
Gujarat anchors India's chemical, pharma, textile, and diamond-cutting industries, with GIFT City IFSC as an emerging financial centre.
Get Started — Free 30-Minute Consultation
To discuss your specific Gujarat 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 Gujarat
For startups and closely held companies in Gujarat, the Section 56(2)(viib) computation under Rule 11UA(2) interlocks with three local touchpoints: assessing-officer charge under ITAT Ahmedabad / Rajkot / Surat appellate jurisdiction, AD-bank reporting under Most active AD-Cat-I market in western India; SBI, HDFC, Kotak, Axis run dedicated diamond-trade and textile-export desks; GIFT City's IBU branches handle complex ECB/FCY structures, and the FEMA pricing regime where any non-resident subscriber is on the cap table. Stamp duty on the underlying allotment instruments follows the Gujarat schedule — 0.50% of authorised capital on MOA, capped at ₹5,00,000 (Gujarat Stamp Act 1958) — which adds up materially on large authorised-capital rounds.
The economic mix of Gujarat runs across textiles & dyeing (Surat), diamonds & jewellery (Surat-Mumbai value chain), ceramic (Morbi — 80% of India's tiles) — sectors that consistently dominate the regulatory case-load and the profile of the engagements we field from this jurisdiction. Notable industrial enclaves include Sanand GIDC, Surat (SDB) SEZ. On the AD-Bank side, most active AD-Cat-I market in Western India; SBI, HDFC, Kotak, Axis run dedicated diamond-trade and textile-export desks; GIFT City's IBU branches handle complex ECB/FCY structures.
GIFT City IFSC at Gandhinagar is India's only operational International Financial Services Centre, offering tax holiday under Section 80LA, exemption from STT/CTT/GST, and a 100% deduction for IFSC units for 10 of 15 years.
Choice of Valuation Method — Gujarat Sector Context
For companies in heavy-asset sectors prevalent in Gujarat (e.g. petrochemicals (Jamnagar, Dahej)), 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 Ahmedabad / Rajkot / Surat
From our practice across ITAT Ahmedabad / Rajkot / Surat 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 Gujarat Cap Tables with Non-Residents
For Gujarat-based companies, the AD-bank channel becomes the operational reporting loop: typically Most active AD-Cat-I market in western India.
Engagement — Gujarat 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 Ahmedabad / Rajkot / Surat. Free 30-minute consultation: +91 99622 60333.
Gujarat: compliance facts for section 56 2 viib valuation report
Gujarat is India's largest manufacturing and export state: petrochemicals and refining at Jamnagar and Dahej, pharmaceuticals and engineering around Ahmedabad and Vadodara, diamonds and textiles in Surat, and ports at Mundra and Kandla. GIFT City at Gandhinagar is the country's only operational International Financial Services Centre, with its own tax regime for IFSC units. Companies file with ROC Ahmedabad, appeal before the Gujarat High Court and NCLT Ahmedabad, and tax matters go to the Ahmedabad, Surat and Rajkot ITAT benches. For section 56 2 viib valuation report this means the company’s filings go to ROC Ahmedabad and tribunal matters to NCLT Ahmedabad; 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 Gujarat?
| Registrar of Companies | ROC Ahmedabad |
|---|---|
| NCLT bench | NCLT Ahmedabad |
| 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 | Gujarat High Court (Ahmedabad) |
| State startup policy | Gujarat Industrial Policy 2020 — Scheme for Assistance for Startups/Innovation |
| Startup nodal agency | i-Hub / Industries Commissionerate, Gujarat |
| Serving Virtual Auditor office | Mumbai office — Workafella, AK Estate, SV Road, off Veer Savarkar Flyover, Goregaon West, Mumbai 400062 |
Gujarat companies file with ROC Ahmedabad; writ remedies lie before the Gujarat High Court (Ahmedabad); company-law and insolvency matters go to the NCLT Ahmedabad.
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.