Valuation Fee Schedule under the Income Tax Act, 2025
Rule 248 of the Income tax Rules, 2026, made under Section 514(2) of the Income tax Act, 2025, prescribes the maximum fee a registered valuer may charge for a valuation report submitted for income tax purposes. The rule was notified on 20 March 2026 and took effect on 1 April 2026.
This fee ceiling applies specifically to valuations under Section 514. It does not govern commercially negotiated fees for NCLT, IBC or bank lending assignments, which are agreed separately between the valuer and the client, though many valuers use this schedule as a reference benchmark for those engagements too.
Slab Wise Maximum Fee
| Slab of Asset Value | Maximum Fee |
|---|---|
| First ₹5,00,000 | 0.5% of the asset value |
| Next ₹10,00,000 (₹5,00,001 to ₹15,00,000) | 0.2% of that slab |
| Next ₹40,00,000 (₹15,00,001 to ₹55,00,000) | 0.1% of that slab |
| Balance above ₹55,00,000 | 0.05% of that slab |
| Minimum fee, if the calculated fee is less than ₹5,000 | ₹5,000 |
Multiple assets, same assessee. When a registered valuer is engaged to value more than one asset for the same assessee, the assets are aggregated and treated as a single asset for the purpose of calculating this fee, rather than applying the slabs separately to each item.
Worked Example
For an asset valued at ₹1,00,00,000 (₹1 crore):
| Slab | Amount in Slab | Rate | Fee |
|---|---|---|---|
| First ₹5,00,000 | ₹5,00,000 | 0.5% | ₹2,500 |
| Next ₹10,00,000 | ₹10,00,000 | 0.2% | ₹2,000 |
| Next ₹40,00,000 | ₹40,00,000 | 0.1% | ₹4,000 |
| Balance | ₹45,00,000 | 0.05% | ₹2,250 |
| Total maximum fee | ₹10,750 | ||
Frequently Asked Questions
Is this a fixed fee, or a cap?
It’s a cap. The registered valuer and the client are free to agree a lower fee; Rule 248 sets the maximum that can legally be charged for a Section 514 valuation report.
Does this fee schedule apply to IBBI or NCLT valuations?
No. It applies specifically to valuation reports issued under Section 514 of the Income tax Act, 2025. NCLT, IBC and bank lending fees are commercially negotiated and not subject to this slab structure.
Where can I read the full rule text?
This page summarises the notified structure as of publication. For the authoritative text, refer to Notification No. 22/2026 on the Income Tax Department’s website, or consult your tax advisor, since implementation guidance on a newly introduced law can be updated.
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