Service
Income Tax, Gift & Partition Valuation
Fair market value reports for gifts, inheritance, partition, Section 56 transactions and assessments
Beyond sale, the Income-tax Act 2025 asks for a property's fair market value in several situations: property received as a gift or for inadequate consideration, family partitions and settlements, valuation of assets in assessment or search proceedings, and transfers between related parties. Rules 56–58 of the Income-tax Rules 2026 (replacing Rule 11UA) set how FMV is determined, and a Section 514 registered valuer's Form 170 report is the standard evidence. Fees follow Rule 248 (minimum ₹5,000).
- Who signs
- A Section 514 registered valuer (formerly Section 34AB) for immovable property. Where the transaction involves a company's assets, an IBBI Registered Valuer may also be needed.
- Typical fee
- ₹10,000 – ₹20,000. Plus 18% GST. Quoted per property; complex partitions with several properties are quoted per property.
- Turnaround
- 3–7 working days
- Inspection
- Required.
- Validity
- As of the transaction date (gift, partition, receipt).
When you need it
- Gift of property to a non-relative (taxable in recipient's hands above ₹50,000)
- Purchase below stamp-duty value by more than 10% (deemed income under the former Section 56(2)(x))
- Family partition and settlement deeds
- Assessment or reassessment where the officer disputes value
- Transfers between relatives or group entities documented at FMV
Documents to send
- Gift deed, will, succession certificate or partition deed (draft or executed)
- Title documents of the property
- Stamp-duty valuation for the transaction
- Plans, tax receipts, utility bills
- PAN of transferor and transferee
- Relationship proof where the relative exemption is claimed
How it works
- Identify the taxable event Gift from a non-relative, purchase below stamp-duty value, partition with unequal shares, or assessment query.
- Compare valuers Prefer valuers with assessment-proceeding experience; quotes list registration numbers.
- Inspection and valuation under Rules 56–58 FMV determined per the prescribed method with stamp-duty value as a reference point.
- Form 170 report Filed with the return or produced in proceedings.
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 gift of property to a relative taxable?
Gifts from specified relatives are exempt regardless of value. Gifts from others are taxed in the recipient's hands if the stamp-duty value exceeds ₹50,000. A valuation report is still useful to fix the recipient's cost for a future sale.
Which rule now governs FMV of immovable property?
Rules 56–58 of the Income-tax Rules 2026, which consolidate the former Rule 11UA framework, effective 1 April 2026.
What happens if I buy a flat below the circle rate?
If the stamp-duty value exceeds the price by more than 10%, the difference is taxed as income in your hands. A registered valuer's report showing the true market value supports a reference to the Valuation Officer.
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
- Fair Market Value as on 1 April 2001: Establish the cost of pre-2001 property with a registered valuer's Form 170 report
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.