Sale Consideration — Unlisted Shares [50CA] & Unascertainable Consideration [50D]
## Sale Consideration in Special Cases — Sections 50CA & 50D
### Section 50CA — Unlisted Shares
When unlisted shares (shares of an unlisted company) are transferred:
FVOC = Higher of:
Fair Market Value (FMV), or
Sale Price
This prevents undervaluation of shares of closely-held / private companies.
### Section 50D — Sale Consideration Not Ascertainable
When the sale price cannot be ascertained or determined:
FVOC = FMV of the capital asset on the date of transfer
This applies for example in barter / exchange / gift-style transfers where no money price is fixed.
Worked example
### Example 1
50CA Example: Mr. X sells 10,000 unlisted shares of P Ltd. to Mr. Y for ₹100 per share. FMV per Rule 11UA = ₹140 per share.
FVOC = Higher of (₹100 × 10,000 = ₹10,00,000) or (₹140 × 10,000 = ₹14,00,000) = ₹14,00,000.
### Example 2
50D Example: Mr. A transfers a painting in exchange for an antique chair. No monetary consideration is fixed. FMV of painting on date of transfer = ₹5,00,000. FVOC = ₹5,00,000.
⚠️ Common exam mistakes
Applying Section 50CA to listed shares — it applies only to unlisted (unquoted) shares.
Confusing Section 50D (no ascertainable price) with Section 50CA (price exists but below FMV).
Forgetting that under 50CA, sale price is compared with FMV — not SDV.
Bare-Act text Sections 50CA and 50D · Income-tax Act, 1961 · click to expand
Section 50CA: Where the consideration received or accruing as a result of the transfer by an assessee 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 such manner as may be prescribed, the value so determined shall, for the purposes of section 48, be deemed to be the full value of consideration received or accruing as a result of such transfer.
Section 50D: Where the consideration received or accruing as a result of the transfer of a capital asset by an assessee is not ascertainable or cannot be determined, then, for the purpose of computing income chargeable to tax as capital gains, the fair market value of the said asset on the date of transfer shall be deemed to be the full value of consideration received or accruing as a result of such transfer.