Section 56 2 viib Valuation Report in Madhya Pradesh
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 Madhya Pradesh 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 Gwalior. Pincode: 462001.
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 Madhya Pradesh?
ROC Gwalior has jurisdiction over companies with a registered office in Madhya 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 Madhya 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 Madhya Pradesh. Stamp duty on the share purchase agreement itself follows the Indian Stamp Act, 1899 (M.P. Amendment).
Do you have an office in Madhya Pradesh?
No. Madhya Pradesh 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 Madhya Pradesh — Section 56(2)(viib)
Madhya Pradesh combines mineral-based industries, pharma, textiles, and growing IT services (in Indore).
Get Started — Free 30-Minute Consultation
To discuss your specific Madhya Pradesh 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 Madhya Pradesh
For startups and closely held companies in Madhya Pradesh, the Section 56(2)(viib) computation under Rule 11UA(2) interlocks with three local touchpoints: assessing-officer charge under ITAT Indore / Jabalpur appellate jurisdiction, AD-bank reporting under Indore is the AD-I hub; SBI, HDFC and Axis at Indore handle most MP soyabean-export and pharma FEMA filings, and the FEMA pricing regime where any non-resident subscriber is on the cap table. Stamp duty on the underlying allotment instruments follows the Madhya Pradesh schedule — 0.15% of authorised capital on MOA (MP Stamp Schedule); concession for women-led companies — which adds up materially on large authorised-capital rounds.
The economic mix of Madhya Pradesh runs across automotive (Pithampur cluster), cement (Satna), soybean & oilseeds processing (Indore-Ujjain — Madhya Pradesh is India's largest soyabean producer) — sectors that consistently dominate the regulatory case-load and the profile of the engagements we field from this jurisdiction. Notable industrial enclaves include Pithampur SEZ (auto-led), Indore IT/ITES SEZ. On the AD-Bank side, Indore is the AD-I hub; SBI, HDFC and Axis at Indore handle most MP soyabean-export and pharma FEMA filings.
Madhya Pradesh is India's largest producer of soyabean, pulses and garlic, and the IT-ITES Investment Promotion Policy 2023 offers up to 40% capex subsidy and stamp-duty exemption for IT units.
Choice of Valuation Method — Madhya Pradesh Sector Context
For companies in heavy-asset sectors prevalent in Madhya Pradesh (e.g. soybean & oilseeds processing (Indore-Ujjain — Madhya Pradesh is India's largest soyabean producer)), 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 Indore / Jabalpur
From our practice across ITAT Indore / Jabalpur 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 Madhya Pradesh Cap Tables with Non-Residents
For Madhya Pradesh-based companies, the AD-bank channel becomes the operational reporting loop: typically Indore is the AD-I hub.
Engagement — Madhya Pradesh 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 Indore / Jabalpur. Free 30-minute consultation: +91 99622 60333.
Madhya Pradesh: compliance facts for section 56 2 viib valuation report
Madhya Pradesh's commercial centres are Indore (the state's trading, pharma and IT hub), Bhopal (administration and services), Pithampur (auto and engineering) and the soybean and wheat processing belt. The state's industrial promotion policy offers investment subsidies, and Indore hosts the NCLT bench and the main ITAT bench. Companies file with ROC Gwalior, and the Madhya Pradesh High Court sits at Jabalpur with benches at Indore and Gwalior. For section 56 2 viib valuation report this means the company’s filings go to ROC Gwalior and tribunal matters to NCLT Indore; 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 Madhya Pradesh?
| Registrar of Companies | ROC Gwalior |
|---|---|
| NCLT bench | NCLT Indore |
| 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 | Madhya Pradesh High Court (Jabalpur) |
| State startup policy | Madhya Pradesh Startup Policy, 2022 |
| Startup nodal agency | MP Startup Centre / MSME Department |
| Nearest Virtual Auditor office | Mumbai office — Workafella, AK Estate, SV Road, off Veer Savarkar Flyover, Goregaon West, Mumbai 400062 (about 787 km by road from Madhya Pradesh) |
Madhya Pradesh companies file with ROC Gwalior; writ remedies lie before the Madhya Pradesh High Court (Jabalpur); company-law and insolvency matters go to the NCLT Indore.
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.