Service
Capital Gains Valuation
Registered-valuer reports that stand up to the assessing officer when you sell, inherit or gift property
A capital gains valuation report is a registered valuer's opinion of a property's fair market value on a specific date, used to compute the tax on its sale. Sellers need it in three situations: to establish the cost of property acquired before 1 April 2001, to contest a stamp-duty value that exceeds the actual sale price by more than 10% (Section 78 of the Income-tax Act 2025, formerly Section 50C), and to support the value of inherited or gifted property. Fees follow the statutory scale in Rule 248 (minimum ₹5,000; about ₹9,000 for a ₹75 lakh property) and reports are delivered in Form 170 within three to seven working days after inspection.
- Who signs
- A valuer registered under Section 514 of the Income-tax Act 2025 (Rules 246–249; report in Form 170). Valuers who held Section 34AB certificates on 31 March 2026 continue, provided they re-file Form 169 by 30 September 2026. For property held by a company, an IBBI Registered Valuer (Land & Building) may also be required.
- Typical fee
- ₹10,000 – ₹20,000. Plus 18% GST. Covers inspection, comparable research and the Form 170 report. Large land parcels and agricultural land sit at the upper end.
- Turnaround
- 3–7 working days
- Inspection
- Required. The valuer or an associate inspects the property, records measurements and condition, and includes dated photographs. Reports issued without inspection are the ones most often rejected in assessment.
- Validity
- Tied to the valuation date (date of transfer or 1 April 2001). The report does not expire but must be retained for the assessment period.
When you need it
- Selling a flat, plot or house bought before 1 April 2001 (FMV 2001 as cost)
- Sale price below stamp-duty value by more than 10%: reference to the Valuation Officer under Section 78 (formerly 50C)
- Inherited or gifted property where the previous owner's cost is unknown
- Family settlement and partition where members buy each other out
- NRI sales where the lower-deduction certificate application needs a defensible cost base
- Reinvestment exemption (Section 84, formerly 54) computations
Documents to send
- Title deed(s) showing acquisition date, consideration and area
- Chain of title where the property was inherited or gifted (will, succession certificate, gift deed)
- Approved plan, occupancy or completion certificate; construction cost records if self-built
- Property-tax receipts (current and, for FMV 2001, any records from around 2001 if available)
- Sale agreement or draft deed for the current transfer (if signed or in negotiation)
- Stamp-duty valuation (circle rate, ready reckoner, guidance value or jantri) for the current transfer
- PAN and identity proof of all co-owners
- Photographs; access for inspection
How it works
- Identify the valuation date Date of transfer for current FMV; 1 April 2001 for property acquired before that date; date of death or gift for inherited or gifted property where cost of the previous owner is unknown.
- Compare valuers by registration and fee Quotes show Section 514 (ex-34AB) registration numbers and the Rule 248 fee for your value so you can spot overcharging.
- Inspection and evidence gathering The valuer measures the property, photographs it and collects comparable transactions, registrar data and, for FMV 2001, historical rates and indices.
- Method selection Sales comparison for flats and plots, land-and-building for houses, income capitalisation for let-out commercial property, and depreciated replacement cost where markets are thin. The report explains why.
- Draft and review You check the facts; the valuer finalises the opinion. Valuers do not change the value to suit the client; they can correct factual inputs.
- Form 170 report delivered Signed and stamped, with methodology, comparables and the valuer's declaration, suitable for filing with your return or in assessment proceedings.
Capital gains valuation by city
Verify before you commission
Ask for the Section 514 (formerly 34AB) or IBBI registration number and a redacted sample report. Our five-minute verification guide shows where to check.
Frequently asked questions
Is a registered valuer's report mandatory to claim FMV as on 1 April 2001?
The Act lets you substitute the fair market value on 1 April 2001 for the actual cost. The law does not require a report to file, but the assessing officer will ask how you arrived at the figure. A Form 170 report from a Section 514 registered valuer is the accepted evidence; guideline value from 2001 is only a floor, not a substitute.
What does a capital gains valuation cost?
Rule 248 caps the fee at 0.5% of the first ₹5 lakh, 0.2% of the next ₹10 lakh, 0.1% of the next ₹40 lakh and 0.05% above that, with a ₹5,000 minimum. For a ₹1 crore property that is ₹11,250. Market quotes in metros fall between ₹5,000 and ₹25,000 depending on complexity and inspection travel.
Which tax rate applies after 1 April 2026?
Long-term gains on property (held over 24 months) are taxed at 12.5% without indexation for transfers after 23 July 2024. Resident individuals and HUFs who bought before that date may instead pay 20% with indexation if lower; non-residents do not get that option.
The circle rate is higher than my sale price. What can the valuer do?
If the stamp-duty value exceeds the actual price by more than 10%, the stamp-duty value is deemed the sale consideration (Section 78, formerly 50C). You can ask the assessing officer to refer the property to a Valuation Officer; a registered valuer's report showing why the market value is lower is the basis for that request.
Can the same report be used for TDS lower-deduction applications by NRIs?
Yes. The Form 13 application for a lower-deduction certificate under Section 397 (formerly 197) needs a capital gains computation, and the valuer's FMV 2001 or inheritance-date report is the cost evidence.
Does the valuer need to visit if I have all documents?
Yes for income-tax purposes. Assessing officers routinely disregard reports that do not evidence inspection. Choose a valuer with inspectors in the property's city.
Related services
- Fair Market Value as on 1 April 2001: Establish the cost of pre-2001 property with a registered valuer's Form 170 report
- Income Tax, Gift & Partition Valuation: Fair market value reports for gifts, inheritance, partition, Section 56 transactions and assessments
- Property Valuation for Visa & Immigration: Embassy-ready valuation reports for Canada PR, Australia, UK, USA, Schengen and NZ applications
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.