Registered Valuers and Valuation Reports Under the Income Tax Act, 2025: A Comprehensive FAQ Guide

Introduction

The Income Tax Act, 2025 took effect from 1 April 2026, bringing with it a structured framework for registered valuers and their reports — a framework that has existed in some form since the Wealth-tax Act, 1957 first established a register of valuers in 1972. Under the new legislation, that register now finds its place in Section 514, and the valuer's report continues to occupy a central position in every valuation-related dispute between the assessee and the Assessing Officer.

The significance of this framework cannot be overstated. An Assessing Officer is not free to dismiss a registered valuer's report without furnishing reasons. Where the officer doubts the value arrived at in such a report, the statutory mechanism available to him is a reference to the Valuation Officer — not a unilateral substitution of his own estimate. The outcome of that reference, and indeed of the original claim, depends heavily on the quality and completeness of the report the assessee places on record.

This article addresses eleven practical questions that commonly arise when a valuer's report is required for income-tax purposes. Where a provision in the Income Tax Act, 2025 has a corresponding predecessor under the Income-tax Act, 1961, the earlier section is noted in brackets, given that assessment proceedings for prior years remain open. The legal position is stated as it stands on 27 September 2026, following the Income-tax (Fourth Amendment) Rules, 2026 dated 17 September 2026.

Q1. Who Qualifies as a "Registered Valuer" for Income-Tax Purposes? Is IBBI Registration Sufficient?

For the purposes of the Income Tax Act, 2025, a registered valuer means a person registered under Section 514 of that Act. Prior to 1 April 2026, this registration was maintained under Section 34AB of the Wealth-tax Act, 1957. By virtue of Rule 246(4) of the Income-tax Rules, 2026, every valuer who held a valid certificate on 31 March 2026 automatically continues on the new register.

The register maintained by the Insolvency and Bankruptcy Board of India (IBBI) under the Companies (Registered Valuers and Valuation) Rules, 2017 is an entirely separate register. That register was created to serve the Companies Act and the Insolvency and Bankruptcy Code. Registration with the IBBI confers no status or authority for any of the valuation work covered in this article. The Income-tax Rules make no reference to IBBI registration as a qualifying credential.

Wherever this article refers to a "registered valuer," it means exclusively a person registered under Section 514 (Section 513(3); Rule 189(4)(g)).

A certificate issued by a chartered engineer, an architect, or a valuer empanelled with a bank is a document — it is not a registered valuer's report for income-tax purposes.

Q2. How Can Registration Be Verified, and What Does It Cover?

The registration certificate is the primary document to examine. It is issued by the Principal Chief Commissioner or Chief Commissioner of the relevant region, or the Principal Director General or Director General, and it carries both the registration number and the class of asset for which the valuer is authorised.

A valuer who was registered under the Wealth-tax Act holds a certificate under Section 34AB. Such a valuer continues under Section 514 of the new Act but is required to update his particulars in Form No. 169 by 31 March 2027.

When reviewing a report, two things must be confirmed: first, that the certificate is valid and current; and second, that the asset being valued falls within the class specified on that certificate.

Q3. Does the Class of Asset Registration Matter?

Yes — significantly. Rule 247(2) prescribes qualifications for ten distinct asset classes, and a residual "any other asset" class is determined on a case-by-case basis by the registering officer under Rule 247(3).

The relevant classes include:

  • Immovable property (other than agricultural land, plantations, forests, mines and quarries)
  • Agricultural land, plantations and forests
  • Mines and quarries
  • Machinery and plant
  • Jewellery and works of art

A valuer registered for land and buildings is authorised to sign reports only for that class. If a factory is being valued, a separate report on the plant and machinery is required — either from a second valuer registered in that class, or from a single valuer holding registration across both classes.