The Income tax Act, 2025 replaced the Income tax Act, 1961 with effect from 1 April 2026. It introduced a dedicated registered valuer framework under Section 514, with the procedural rules notified as Rules 246 to 249 of the Income tax Rules, 2026 (Notification No. 22/2026, dated 20 March 2026).

This is a separate registration from an IBBI registered valuer, though many valuers who serve corporate clients choose to hold both, since they cover different types of assignments. This page summarises the notified framework as of publication; because this is a newly introduced law, always cross check the current text against the official CBDT notification or your tax advisor before relying on it.

Why This Registration Exists Separately from IBBI

Section 514 governs registration, qualification and the functions of valuers specifically for valuation reports submitted to the Income Tax Department, for example in capital gains computation or search and seizure assessments. Separately, Section 247 of the same Act allows valuers already registered under any other law, including IBBI, to assist the Income Tax Department during search and seizure operations without a fresh registration. In practice this means a valuer’s exact registration needs depend on the specific type of income tax work they intend to take on.

The Ten Asset Classes under Rule 247

Rule 247 prescribes qualifications separately for each of ten asset classes:

1. Immovable property
2. Agricultural land
3. Plantations
4. Forests
5. Mines and quarries
6. Securities and business assets
7. Plant and machinery
8. Jewellery
9. Works of art
10. Life interest, reversions and other actuarial interests

How to Apply: Rule 246

1. File Form 169 with the Principal Chief Commissioner or Chief Commissioner, or the Principal Director General or Director General of Income Tax, having jurisdiction over your case
2. Pay the non refundable application fee of ₹10,000
3. Await disposal. The rules provide for the application to be disposed of within 6 months

Reporting Format: Rule 249

Once registered, valuation reports issued under Section 514(3) must follow the standardised format prescribed in Form 170.

Fees You Can Charge

Once registered, the maximum fee you can charge for a valuation report is capped under Rule 248. See the full Valuation Fee Schedule under the Income Tax Act, 2025 for the slab wise rates and a worked example.

Frequently Asked Questions

Do I need both an IBBI registration and a Section 514 registration?
They serve different purposes. IBBI registration is required for NCLT, IBC and most Companies Act and bank lending valuations. Section 514 registration is for valuation reports submitted directly to the Income Tax Department. If your practice touches both types of work, holding both registrations gives you the widest scope of engagements.

When did this framework take effect?
The Income tax Rules, 2026 were notified on 20 March 2026 and apply from 1 April 2026, covering Tax Year 2026-27 onward.

Is the ₹10,000 application fee refundable?
No, the application fee under Rule 246 is stated as non refundable regardless of the outcome of the application.

Considering this registration, or need a valuer who already holds it? Contact us →