Property valuation in India can serve very different statutory, banking, insolvency, taxation, land acquisition and tenancy purposes. The required certificate depends on the applicable Act, valuation purpose, property type and statutory context.
The Income Tax Act contains several situations where property valuation evidence can become relevant to the determination of taxable value, historical FMV, deemed consideration or statutory proceedings.
Seller’s capital gain where sale consideration is below SDV (Stamp Duty Value); Section 50C(2) challenge with a Government Approved Valuer’s FMV certificate; Section 50C(3) DVO reference option.
FMV as on 1 April 2001 as the deemed cost of acquisition for eligible pre-2001 property; the Finance Act 2024 Method A anchor within the supplied tax framework.
Buyer’s taxable income where purchase price is below SDV; the mirror provision to Section 50C within the supplied statutory framework.
Special LTCG provisions for depreciable property and WDV-based computation.
JDA transactions and the supplied framework relating to FMV at the date of possession transfer.
Capital gain exemption conditions and FMV of reinvestment property where relevant to the valuation requirement.
Government Approved Valuer’s certificate for property found during search and seizure proceedings within the supplied statutory context.
TDS on property sale by an NRI; the supplied framework identifies the Government Approved Valuer’s certificate as supporting the FMV determination.
Banking valuation requirements can differ according to whether the property is being assessed for mortgage, lending, collateral enforcement or priority-sector purposes.
SARFAESI enforcement involving Market Value (MV) and Distressed Sale Value (DSV/FSV) for immovable property collateral enforcement, together with Reserve Price for auction.
Bank mortgage valuation for home loans, Loan Against Property (LAP) and commercial property mortgages; the empanelled valuer’s certificate is used within the bank’s credit process.
Agricultural property valuations for priority-sector banking requirements within the supplied valuation framework.
IBBI L&B Registered Valuer certificate for IBC CIRP property valuation, covering Fair Value on a going-concern basis and Liquidation Value on a break-up basis.
Companies Act Sections 230–232 merger and demerger scheme property valuation with a Registered Valuer report supporting the transaction.
Under the supplied framework for LARR Act 2013, Section 26, a Government Approved Valuer’s compensation certificate supports land acquisition valuation, using the methodology prescribed in Section 26 and market value from registered transactions.
Fair rent determination under applicable state rent control legislation may require independent property valuation evidence.
Determination of fair rent under applicable state rent control legislation, with the Government Approved Valuer’s fair rent certificate serving as valuation evidence.
Before commissioning a property valuation, identify the statutory provision, intended certificate and property purpose so that the valuation is prepared for the appropriate context.
Whether your requirement concerns Section 50C, Section 55(2)(b), SARFAESI, IBC CIRP, LARR, NRI property or Fair Rent, discuss the property and intended valuation purpose with the valuation practice.