Service
Fair Market Value as on 1 April 2001
Establish the cost of pre-2001 property with a registered valuer's Form 170 report
If you sell property acquired before 1 April 2001, the Income-tax Act 2025 lets you treat its fair market value on that date as your cost of acquisition. A registered valuer's report is the accepted evidence for that figure. The valuer reconstructs the 2001 market from registrar records, contemporaneous rates, indices and the property's condition at the time, and issues a Form 170 report. Fees follow the Rule 248 scale (minimum ₹5,000) and the work takes three to seven working days including inspection.
- Who signs
- A registered valuer for immovable property under Section 514 (formerly Section 34AB). For agricultural land, the valuer must be registered in the agricultural-land category.
- Typical fee
- ₹10,000 – ₹20,000. Plus 18% GST. Where a current-value report is needed alongside the 2001 report, the two are usually quoted together at a reduced combined fee.
- Turnaround
- 3–7 working days
- Inspection
- Required. The valuer inspects today and infers 2001 condition from records, plans and your evidence.
- Validity
- Permanent for the property, but the assessing officer may still question inputs; keep the working papers.
When you need it
- Sale of ancestral or long-held residential property
- Sale of pre-2001 plots and agricultural land converted since
- Inherited flats where the deceased bought before 2001
- Redevelopment and joint-development agreements on old buildings
- NRI sellers computing gains for a lower-deduction certificate
Documents to send
- Original acquisition deed or allotment letter with date and price
- Building plan or completion certificate showing construction year
- Old property-tax bills, electricity bills or society records from around 2001 (any evidence of the property's existence and state)
- Improvements after 2001 with dates and bills (excluded from 2001 value, indexed separately)
- Current title documents and identity proof of owners
- Draft sale agreement, if any
How it works
- Confirm eligibility Property must have been acquired (by purchase, inheritance or gift chain) before 1 April 2001. For inherited property, the original owner's acquisition date counts.
- Compare valuers by FMV-2001 experience Ask each quote to state how many 2001 reports the valuer has issued and whether any were tested in assessment.
- Evidence assembly The valuer collects circle rates or guideline values from 2001, registrar sale data, published indices and local knowledge of infrastructure at the time.
- Valuation and reconciliation Sales comparison adjusted back to 2001, cross-checked against the 2001 guideline value (a floor, not a cap) and depreciated cost of the structure as it stood.
- Form 170 report Explains data sources and adjustments so the figure can be defended if questioned.
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
Can I just use the 2001 circle rate as my cost?
The 2001 stamp-duty value is a floor: the FMV you claim cannot be lower than it where a 2001 rate existed. It is not a substitute for a valuation. Where the market in 2001 was above guideline value, a valuer's report is what supports the higher cost.
Is indexation still available?
For transfers after 23 July 2024 the default rate is 12.5% without indexation. Resident individuals and HUFs may opt for 20% with indexation from the 2001 base if that yields lower tax. The FMV 2001 report is needed under either route.
How does the valuer know what the property was worth in 2001?
From registrar transaction records, 2001 guideline values, published price indices, old plans and bills, and adjustments for infrastructure that did not exist then. The report lists every source.
What if the building was constructed after 2001 on pre-2001 land?
The land is valued as on 1 April 2001; the construction cost is taken separately with its actual date. The report separates the two.
What does an FMV 2001 report cost?
Rule 248 caps fees on a sliding scale with a ₹5,000 minimum; quotes for metro flats typically fall between ₹5,000 and ₹15,000, higher for large plots and agricultural land requiring more records work.
Related services
- Capital Gains Valuation: Registered-valuer reports that stand up to the assessing officer when you sell, inherit or gift property
- Court, Legal & Family Settlement Valuation: Valuation reports for partition suits, matrimonial settlements, probate, arbitration and land acquisition
- Income Tax, Gift & Partition Valuation: Fair market value reports for gifts, inheritance, partition, Section 56 transactions and assessments
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.