NSE Shares Fair Market Value on 31 Jan 2018 - A Comprehensive Excel Data for Investors
How to Find the Fair Market Value of Shares as on 31 January 2018 NSE Excel Download
If you are an investor or a taxpayer who owns shares in a company, you may need to know the fair market value of those shares for various purposes. For example, you may need to report the fair market value of your shares for capital gains tax calculation, or you may want to compare the fair market value with the market value to decide whether to buy or sell your shares. But how do you find the fair market value of your shares? And how can you use the data from the National Stock Exchange (NSE) of India to do so?
fair market value of shares as on 31 january 2018 nse excel download
In this article, we will explain what fair market value is and why it is important, what NSE is and how to download data from it, and how to calculate fair market value of shares as on 31 January 2018 using NSE data. We will also provide an example of calculating fair market value of shares using NSE data and answer some frequently asked questions.
What is fair market value and why is it important?
Definition of fair market value
Fair market value is the estimated price at which an asset would sell in a competitive and open market. It assumes that both the buyer and seller are reasonably knowledgeable about the asset, are acting in their own best interests, are free of undue pressure, and are given a reasonable time period for completing the transaction. Given these conditions, an asset's fair market value should represent an accurate valuation or assessment of its worth.
Importance of fair market value for taxation and investment purposes
Fair market value is important for taxation and investment purposes because it helps determine the taxable income or capital gain or loss from selling an asset. For example, if you sell your shares in a company, you need to know the fair market value of those shares as on 31 January 2018, which is the date when the long-term capital gains tax rate for equity and equity-related mutual funds was increased from 0% to 10% in India. By knowing the fair market value, you can calculate your grandfathered value of shares, which is the higher of your actual cost or the fair market value as on 31 January 2018. This grandfathered value will help you reduce your taxable capital gain or increase your capital loss when you sell your shares.
Fair market value is also important for investment purposes because it helps you evaluate whether an asset is overvalued or undervalued in the market. For example, if you want to buy or sell your shares in a company, you need to compare the fair market value with the market value, which is the price at which an asset trades in the marketplace. If the fair market value is higher than the market value, it means that the asset is undervalued and may be a good buy. If the fair market value is lower than the market value, it means that the asset is overvalued and may be a good sell.