§ 79
Chapter IV — Computation Of Total Income
Fair Market Value Deemed Full Consideration
Income-tax Act, 2025
When you sell an unquoted share of a company for less than its fair market value (FMV), the tax law treats the FMV as the actual amount received for calculating capital gains under section 72.
This rule does not apply to certain persons or situations that may be specified by the government.
‘Quoted share’ means a share regularly listed on a recognized stock exchange with ongoing market quotations.
📜 Official text of the section +
79. (1) If the consideration received or accruing from the transfer of a capital
asset, being share of a company other than a quoted share, is less than the fair
market value of such share determined in the manner as may be prescribed, the
value so determined shall be deemed to be the full value of consideration received
or accruing as a result of such transfer for the purposes of section 72.
(2) The provisions of sub-section (1) shall not apply to any consideration received
or accruing as a result of transfer by such class of persons and subject to such con-
ditions, as may be prescribed.
(3) For the purposes of this section, the expression “quoted share” means the share
quoted on any recognised stock exchange with regularity from time to time, where
the quotation of such share is based on current transaction made in the ordinary
course of business.
Fair market value deemed to be full value of consideration in certain cases.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.