Glossary

Property valuation terms, defined

54 terms with the 2026 references (Income-tax Act 2025 and Income-tax Rules 2026) and the former 1961-Act numbers in brackets.

7/12 extract (satbara): The land record of rights in Maharashtra and Gujarat showing ownership, area and crop or use; with the 8A extract, the primary evidence for land outside city-survey areas. Related: property card
Carpet area: The usable floor area within the walls of a unit, as defined under RERA; the basis on which valuers compare Maharashtra flats and post-2017 projects nationwide. Related: super built up area
Chartered Engineer (CEng): A corporate member of the Institution of Engineers (India). Issues technical, structural and reinstatement certificates; may also be a registered valuer, but the CEng title alone does not confer valuation registration. Related: registered valuer
Circle rate: Delhi's (and several northern states') term for the minimum stamp-duty value of land and construction by colony category. Delhi's rates were notified in September 2014 and remain in force in 2026. Related: guideline value
Completion certificate (CC): Certification by the planning authority that construction is complete per approved plans; often a precondition for the occupancy certificate. Related: occupancy certificate
Cost of acquisition: The price paid for a capital asset plus capitalised costs; for pre-2001 assets the taxpayer may substitute FMV as on 1 April 2001. Related: fmv 2001
Depreciated replacement cost: Current cost to build an equivalent structure less depreciation for age and obsolescence, plus land value; used where comparable sales are scarce. Related: land and building method, reinstatement value
Distress value: The recovery expected in a forced sale, typically 70–75% of market value; reported to lenders alongside market and realisable values. Related: realisable value
Dual-currency report: A valuation report stating the value in INR with an equivalent in a foreign currency at the RBI reference rate on the report date; standard for visa and overseas-bank files. Related: valuation report
Encumbrance certificate (EC): A sub-registrar's certificate listing registered transactions on a property over a period; standard title evidence in Karnataka, Tamil Nadu, Telangana and Andhra Pradesh. Related: khata
Fair market value (FMV): The price an asset would fetch in an open-market transaction between a willing buyer and a willing seller on the valuation date, neither under compulsion. Related: fmv 2001, market value
FMV as on 1 April 2001: The fair market value of a capital asset on 1 April 2001, which a taxpayer may substitute for the actual cost of an asset acquired before that date. Cannot be lower than the stamp-duty value on that date where one existed. Evidenced by a registered valuer's report. Related: fair market value, cost of acquisition
Form 13: Online application on TRACES for a lower or nil deduction certificate under Section 397 (formerly 197); supported by the sale agreement, cost evidence (valuer's report) and computation. Related: section 397
Form 169: Application for registration as a valuer under the Income-tax Rules 2026 (fee ₹10,000, non-refundable); also used by former 34AB valuers to update their registration by 30 September 2026. Related: section 514
Form 170: The prescribed format for a registered valuer's report under the Income-tax Rules 2026, covering property description, valuation date, method, comparables, photographs and the valuer's declaration and registration details. Related: section 514, valuation report
Form 27Q: The quarterly TDS return filed by a buyer who has deducted tax on payments to a non-resident, including property purchases. Related: section 393
Forms 145 and 146 (formerly 15CA and 15CB): From 1 April 2026, the remitter's declaration (Form 145) and the Chartered Accountant's certificate (Form 146) required for remitting funds abroad, including property sale proceeds from an NRO account above ₹5 lakh. Related: repatriation, nro account
Government approved valuer: Everyday term for a valuer registered with the Income-tax Department (Section 514, formerly 34AB). No ministry issues a separate 'approval'; the registration is the approval. Related: registered valuer, section 34ab
Guideline value: The state's minimum value for stamp-duty purposes. Called circle rate (Delhi, UP, Haryana), ready reckoner rate (Maharashtra), guidance value (Karnataka), guideline value (Tamil Nadu), market value (Telangana, West Bengal), jantri (Gujarat) and collector guideline (Madhya Pradesh). Related: circle rate, ready reckoner rate, jantri, section 78
IBBI Registered Valuer (RV): A valuer registered with the Insolvency and Bankruptcy Board of India through a Registered Valuer Organisation in one of three asset classes: Land & Building, Plant & Machinery, Securities or Financial Assets. Mandatory for Companies Act and IBC valuations; searchable on ibbi.gov.in. Related: registered valuer, rvo
Income capitalisation method: Valuing a let-out property by capitalising its net rental income at a market yield; used for commercial and rented premises. Related: sales comparison
Indexation: Adjustment of the cost of acquisition using the Cost Inflation Index. Available only as an option to resident individuals and HUFs for property bought before 23 July 2024; not available to non-residents. Related: long term capital gain, fmv 2001
Jantri: Gujarat's stamp-duty rate schedule, searchable on the Garvi portal; doubled in April 2023 with a further revision pending. Related: guideline value
Khata (A-khata / B-khata): Karnataka's municipal account record for a property. A-khata denotes an approved property with dues paid; B-khata denotes unapproved layouts or unpaid charges and lowers value and lender appetite. Related: encumbrance certificate
Land and building method: Valuing the land by comparison and adding the depreciated cost of the structure; used for independent houses and industrial premises. Related: sales comparison, depreciated replacement cost
Long-term capital gain (LTCG) on property: Gain on immovable property held for more than 24 months, taxed at 12.5% without indexation for transfers after 23 July 2024 (resident individuals and HUFs may opt for 20% with indexation on pre-July-2024 purchases). Related: indexation, section 84
Market value: The valuer's estimate of the price a property would achieve on the valuation date; distinct from the state's guideline value used for stamp duty. Related: guideline value, fair market value
Net worth certificate: A CA's certified statement of total assets minus liabilities on a date, with UDIN; used for visas, tenders and bank guarantees. Property figures should come from a registered valuer's report. Related: udin, valuation report
NRI (Non-Resident Indian): An Indian citizen resident outside India for tax purposes. NRIs selling Indian property face TDS on the full price under Section 393(2) and repatriate through NRO accounts with Forms 145/146. Related: oci, section 393, repatriation
NRO account: Non-Resident Ordinary rupee account for income earned in India; property sale proceeds must be credited here before repatriation. Related: repatriation
Occupancy certificate (OC): The municipal certificate that a building was completed per the approved plan and is fit for occupation; its absence lowers value and lender appetite. Related: completion certificate
OCI (Overseas Citizen of India): A lifelong visa and status for persons of Indian origin who hold foreign citizenship; OCI holders may buy and sell residential and commercial property in India but not agricultural land, and are non-residents for tax purposes unless resident in India. Related: nri
Patta and chitta: Tamil Nadu's land ownership record (patta) and its register extract (chitta); cited with the encumbrance certificate in Chennai valuations. Related: encumbrance certificate
Power of attorney (POA): A document authorising a representative to act for the owner. For NRI property sales it must be executed before the Indian consulate or notarised and apostilled abroad, then adjudicated and, where required, registered in India. Related: repatriation
Property card: The city-survey ownership record for urban land in Maharashtra and Gujarat, equivalent to the 7/12 extract for rural land. Related: 7 12 extract
Ready reckoner rate: Maharashtra's Annual Statement of Rates for stamp-duty valuation, published by the IGR each April; unchanged for FY 2026-27. Related: guideline value
Realisable value: The amount a lender expects to recover in an orderly sale, typically 85–90% of market value; used for loan-to-value decisions. Related: distress value
Registered valuer: A valuer registered with the Income-tax Department under Section 514 of the Income-tax Act 2025 (Rules 246–249; formerly Section 34AB of the Wealth-tax Act) for a specified asset class, or with the IBBI under the Companies (Registered Valuers and Valuation) Rules 2017. Tax filings expect the former; Companies Act and IBC matters require the latter. Related: ibbi registered valuer, section 514, form 170
Registered Valuer Organisation (RVO): A body recognised by the IBBI that enrols, trains and supervises IBBI Registered Valuers. Related: ibbi registered valuer
Reinstatement value: The cost to rebuild a structure to the same specification today, excluding land; the correct basis for building insurance. Related: depreciated replacement cost
Repatriation: Transfer of funds from India to an overseas account. Sale proceeds of property held by an NRI go through the NRO account, with Forms 145/146, subject to USD 1 million per financial year (no limit for property bought from NRE/FCNR funds, up to two residential properties). Related: forms 145 146, nro account
Rule 248 fee scale: Maximum fee for a registered valuer's report for income-tax purposes: 0.5% of the first ₹5 lakh of asset value, 0.2% of the next ₹10 lakh, 0.1% of the next ₹40 lakh and 0.05% of the balance, subject to a ₹5,000 minimum. Related: section 514
Rules 56–58, Income-tax Rules 2026: The consolidated framework for determining fair market value of property, shares and other assets, replacing Rule 11UA of the 1962 Rules from 1 April 2026. Related: fair market value
Sales comparison method: Valuation by adjusting recent sale prices of comparable properties for differences in location, size, floor, age and condition; the primary method for flats and plots. Related: land and building method, income capitalisation
Section 34AB, Wealth-tax Act 1957: The former basis of income-tax valuer registration. Valuers holding valid 34AB certificates on 31 March 2026 continue under Section 514 if they file Form 169 by 30 September 2026. Related: section 514, form 169
Section 393(2), Income-tax Act 2025 (formerly 195): Requires the buyer to deduct tax at source on the full consideration paid to a non-resident seller of property, at the rate applicable to the gain (12.5% plus surcharge and cess for long-term gains). Related: section 397, form 27q
Section 397, Income-tax Act 2025 (formerly 197): Allows a non-resident seller to apply (Form 13 on TRACES) for a certificate directing the buyer to deduct tax at a lower or nil rate based on the actual gain; Budget 2026 removed the buyer-TAN requirement for this route from 1 October 2026. Related: section 393, form 13
Section 514, Income-tax Act 2025: The provision governing registered valuers from 1 April 2026, replacing reliance on Section 34AB of the Wealth-tax Act. Detailed in Rules 246–249 of the Income-tax Rules 2026 with Form 169 (registration) and Form 170 (report). Related: section 34ab, form 169, form 170, rule 248
Section 78, Income-tax Act 2025 (formerly 50C): Where the stamp-duty value of transferred land or building exceeds the sale consideration by more than 10%, the stamp-duty value is deemed to be the consideration for capital gains, unless a Valuation Officer determines a lower value on reference. Related: guideline value, valuation officer
Section 84, Income-tax Act 2025 (formerly 54): Exemption from long-term capital gains on sale of a residential house when the gain is reinvested in another residential house within the prescribed period, capped at ₹10 crore of gains. Related: long term capital gain
Super built-up area: Carpet area plus walls and a share of common areas; still quoted in many sale deeds in Karnataka, Gujarat and Telangana. Valuers cross-check it against carpet area. Related: carpet area
UDIN: Unique Document Identification Number generated by a Chartered Accountant on the ICAI portal for every certificate; verifiable online and required on net-worth certificates and Form 146. Related: net worth certificate
Valuation Officer (VO): An officer of the Income-tax Department's valuation cell to whom an assessing officer may refer a property to determine its value, typically when a taxpayer disputes the stamp-duty value. Related: section 78
Valuation report (valuation certificate): A registered valuer's signed and stamped opinion of a property's value on a date, with method, comparables, photographs and registration details; called a certificate in everyday usage. Related: form 170, market value

Last reviewed 6 September 2026 by ValuerDekho editorial team. Regulatory references are to the Income-tax Act 2025 and Income-tax Rules 2026 (in force from 1 April 2026) with the former 1961-Act section numbers in brackets. This is general information, not tax or legal advice.