Section 56 2 viib Valuation Report in Jaipur
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 Jaipur 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 Jaipur. Pincode: 302001.
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 Jaipur?
ROC-cum-OL Jaipur has jurisdiction over companies with a registered office in Rajasthan. 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 Rajasthan?
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 Rajasthan. Stamp duty on the share purchase agreement itself follows the Rajasthan Stamp Act, 1998.
Do you have an office in Jaipur?
No. Jaipur is served remotely from our Mumbai office, about 1,094 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 Jaipur — Section 56(2)(viib)
Jaipur is Rajasthan's commercial and gems-and-jewellery capital, with strong tourism, auto-component, and education-sector activity. Rajasthan High Court, ITAT Jaipur bench.
Why CA V. Viswanathan and Virtual Auditor for Jaipur?
Virtual Auditor is led by CA V. Offices in Chennai, Bangalore, and Mumbai serve clients across Rajasthan 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 Jaipur 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 Jaipur
For startups and closely held companies in Jaipur, the Section 56(2)(viib) computation under Rule 11UA(2) interlocks with three local touchpoints: assessing-officer charge under ITAT Jaipur / Jodhpur appellate jurisdiction, AD-bank reporting under HDFC, ICICI Jaipur and Bhiwadi handle the bulk of Japanese-FDI and gem-jewellery FEMA work; Udaipur for mining-sector exporters, and the FEMA pricing regime where any non-resident subscriber is on the cap table. Stamp duty on the underlying allotment instruments follows the Jaipur schedule — 0.50% of authorised capital on MOA capped at ₹25 lakh (Rajasthan Stamp Act) — which adds up materially on large authorised-capital rounds.
Jaipur hosts ROC Rajasthan, the High Court of Rajasthan principal bench, and ITAT Jaipur. The city is India's largest gem-cutting and coloured-stone trading centre (Johari Bazaar, Gopalji Ka Rasta) and the Mahindra World City SEZ Jaipur is among the largest multi-product SEZs in north India.
The economic mix of Jaipur runs across textiles (Bhilwara — synthetic-fabric capital, Jaipur — block-print and gem-cutting), mining & minerals (zinc, copper — Hindustan Zinc Udaipur), automobiles (Neemrana-Bhiwadi Japanese cluster) — sectors that consistently dominate the regulatory case-load and the profile of the engagements we field from this jurisdiction. Notable industrial enclaves include Mahindra World City Jaipur, RIICO Bhiwadi. On the AD-Bank side, HDFC, ICICI Jaipur and Bhiwadi handle the bulk of Japanese-FDI and gem-jewellery FEMA work; Udaipur for mining-sector exporters.
Rajasthan is the only large state with no Professions Tax; Bhilwara accounts for over half of India's synthetic-suiting fabric output, and the Industrial Development Policy 2024 offers up to 100% net SGST reimbursement for thrust-sector mega units.
Choice of Valuation Method — Jaipur Sector Context
For companies in heavy-asset sectors prevalent in Jaipur (e.g. mining & minerals (zinc, copper — Hindustan Zinc Udaipur)), 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 Jaipur / Jodhpur
From our practice across ITAT Jaipur / Jodhpur 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 Jaipur Cap Tables with Non-Residents
For Jaipur-based companies, the AD-bank channel becomes the operational reporting loop: typically HDFC, ICICI Jaipur and Bhiwadi handle the bulk of Japanese-FDI and gem-jewellery FEMA work.
Engagement — Jaipur 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 Jaipur / Jodhpur. Free 30-minute consultation: +91 99622 60333.
Jaipur: compliance facts for section 56 2 viib valuation report
Jaipur is Rajasthan's capital and its gems, jewellery and handicraft export centre, with Mahindra World City's IT and engineering SEZ, tourism and a growing startup base under iStart. ROC-cum-OL Jaipur, NCLT Jaipur, ITAT Jaipur and the Jaipur bench of the Rajasthan High Court are all in the city. For section 56 2 viib valuation report this means the company’s filings go to ROC-cum-OL Jaipur and tribunal matters to NCLT Jaipur; 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 Jaipur?
| Registrar of Companies | ROC-cum-OL Jaipur |
|---|---|
| NCLT bench | NCLT Jaipur |
| 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 | Rajasthan High Court (Jaipur Bench) |
| State startup policy | Rajasthan Startup Policy, 2022 (iStart) |
| Startup nodal agency | iStart Rajasthan / Department of Information Technology |
| Nearest Virtual Auditor office | Mumbai office — Workafella, AK Estate, SV Road, off Veer Savarkar Flyover, Goregaon West, Mumbai 400062 (about 1,094 km by road from Jaipur) |
Jaipur companies file with ROC-cum-OL Jaipur; writ remedies lie before the Rajasthan High Court (Jaipur Bench); company-law and insolvency matters go to the NCLT Jaipur.
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.