Fair Market Value – Section 2(44) | Income-tax Act, 2025 vs 1961

§ 2(44) · Income-tax Act, 2025

Fair market value

ITA 2025 · 2(44) ITA 1961 · 2(22B)
Definition — Section 2(44)

Means the price that a capital asset would ordinarily fetch on sale in the open market on the relevant date — and where the price is not ascertainable, such price as may be determined in accordance with the rules made under the Act.

Act Comparison
Income-tax Act, 2025
2(44)
Fair market value
Income-tax Act, 1961
2(22B)
Fair market value
Key Points
  • Maps to Section 2(22B) of the 1961 Act
  • Central to gift tax provisions (Section 56), capital gains computations, and ESOPs
  • Valuation rules in Rules 11U and 11UA under the Income-tax Rules prescribe computation methodology
💡 Practical Note

FMV determines the taxability of gifts, ESOPs, and unlisted share transfers — incorrect FMV computation is one of the top reasons for tax demands.

Published by Simplified Tax India — Clear, section-wise comparison of Income-tax Acts. ← Back to Section 2 Definitions Table
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