Registered valuers play a critical role in the income tax ecosystem-valuations of immovable property, shares, business assets, jewellery, and other assets are required for capital gains computation, gift taxation, wealth-related disclosures, and transfer pricing adjustments. Under the Income Tax Act, 2025 (effective 1 April 2026), the registered valuer framework is codified under Section 514, with detailed procedural rules in Rules 246-249 of the IT Rules, 2026.
Significantly, the new framework introduces Form 169 (application for registration) and Form 170 (valuation report)-neither of which was prescribed under the old Income Tax Rules, 1962. The progressive fee scale under Rule 248 and the qualification requirements under Rule 247 are also now explicitly codified with the Section 514 anchor. This guide covers the complete registration process, qualification requirements for all 10 asset classes, the fee scale, the valuation report format, transitional provisions, and the interaction with the Companies Act registered valuer framework. For professionals providing income tax return filing (https://www.patronaccounting.com/income-tax-return) services, understanding the valuer framework is essential when clients require valuations for capital gains, gift transactions, or scrutiny proceedings.
Rules 246-249: Complete Framework
| Rule | Subject | Key Provision | Form |
|---|---|---|---|
| 246 | Application for registration as valuer | File Form 169 with Rs 10,000 fee to PCIT/CCIT or PDGIT/DGIT | Form 169 (new) |
| 247 | Qualifications of registered valuer | 10 asset classes with specific educational/professional/experience requirements | N/A |
| 248 | Scale of fees for valuation | Progressive fee: 0.5%/0.2%/0.1%/0.05%; minimum Rs 5,000 | N/A |
| 249 | Form of valuation report | Valuation report in prescribed format | Form 170 (new) |
How to Register: Step-by-Step (Rule 246)
- Determine the asset class. Identify which of the 10 asset classes (see qualification table below) you wish to register for. A single valuer can register for multiple asset classes if they meet the qualifications for each.
- Verify qualifications under Rule 247. Ensure you meet the educational, professional, and experience requirements prescribed for the relevant asset class. If your asset class is not covered in the 10 prescribed categories, the PCIT/CCIT or PDGIT/DGIT will determine qualifications on a case-by-case basis (Rule 247(3)).
- Prepare Form 169. Complete the new prescribed application form with personal details, qualifications, experience, asset class(es) sought, and supporting documents.
- Pay Rs 10,000 application fee. This is a non-refundable fee. Pay through the prescribed mode and retain the challan for attachment to the form.
- Submit to the appropriate authority. File with the Principal Chief Commissioner or Chief Commissioner, or Principal Director General or Director General having jurisdiction. For professionals using tax audit services (https://www.patronaccounting.com/tax-audit), the jurisdictional authority is the same as for the professional’s tax assessment.
- Authority disposes within 6 months. Under Rule 247(10), the application must be disposed of-either by granting approval or rejecting it-within 6 months from the end of the month of submission. The authority may call for additional information (Rule 247(11)).
- Registration granted or rejected. If approved, the valuer is registered under Section 514 and can issue valuation reports in Form 170 for income tax purposes.
Qualification Requirements: 10 Asset Classes (Rule 247)
| # | Asset Class | Key Qualifications |
|---|---|---|
| 1 | Immovable property (excl. agricultural land, plantations, forests, mines) | Degree in civil engineering, architecture, town planning, or PG in real estate valuation + professional experience |
| 2 | Agricultural land | Agricultural degree from recognised university + experience in land valuation or retired government service in agriculture/land revenue |
| 3 | Plantations (tea, coffee, rubber, cardamom) | Degree in agriculture/botany/horticulture + experience in plantation management or valuation |
| 4 | Forests | Retired government officer (gazetted post) with 5+ years specialised forestry service |
| 5 | Mines and quarries | Graduate in mining from recognised university + mining engineer experience or retired government service in mining |
| 6 | Stocks, shares, debentures, securities, partnership interests, business assets (incl. goodwill) | CA / CMA / CS with practice experience, or MBA (Finance) with valuation experience, or equivalent professional with minimum gross receipts |
| 7 | Plant and machinery | Degree in mechanical/electrical/electronic engineering + 10 years practice as valuer (or PG in valuation of machinery: 2 years practice) |
| 8 | Jewellery | 5+ years as proprietor/partner in jewellery business with average annual turnover of Rs 15 lakh+, or recognised gemologist qualification |
| 9 | Works of art | Specialised academic/professional pursuit in the art form + service as Director of recognised museums (National Museum, Indian Museum, etc.) or senior archaeological positions |
| 10 | Life interest, reversions, and other actuarial interests | Fellow of the Actuarial Society of India or equivalent actuarial qualification with practice experience |
For entities registered through company registration (https://www.patronaccounting.com/private-limited-company-registration) that require frequent valuations (share allotment, buyback, mergers, capital gains), engaging a valuer registered under both Section 514 (IT Act) and Section 247 (Companies Act) ensures the valuation is accepted across both regulatory frameworks.
Fee Scale for Valuation Services (Rule 248)
| Asset Value Slab | Maximum Fee Rate | Cumulative Fee Example |
|---|---|---|
| First Rs 5,00,000 | 0.50% | Rs 2,500 |
| Next Rs 10,00,000 (Rs 5L to Rs 15L) | 0.20% | Rs 2,500 + Rs 2,000 = Rs 4,500 |
| Next Rs 40,00,000 (Rs 15L to Rs 55L) | 0.10% | Rs 4,500 + Rs 4,000 = Rs 8,500 |
| Balance above Rs 55,00,000 | 0.05% | Rs 8,500 + 0.05% on excess |
Key rules:
- Minimum fee: Rs 5,000. If the computed fee is less than Rs 5,000, the valuer may charge Rs 5,000.
- Multiple assets = single computation: When two or more assets are valued at the instance of the same assessee, all assets are treated as a single asset for fee calculation. This prevents fee multiplication across related valuations.
- These are maximum rates: The fee scale represents the upper limit. Valuers and assessees may negotiate lower fees.
Example: A registered valuer values immovable property worth Rs 2 crore for an assessee. Fee computation: Rs 2,500 (first Rs 5L) + Rs 2,000 (next Rs 10L) + Rs 4,000 (next Rs 40L) + Rs 7,250 (Rs 1.45 crore at 0.05%) = Rs 15,750. Since this exceeds the Rs 5,000 minimum, the valuer may charge up to Rs 15,750.
For professionals providing professional accounting services (https://www.patronaccounting.com/accounting-services), advising clients on valuation fee budgets based on Rule 248 prevents overbilling and ensures regulatory compliance.
Valuation Report: Form 170 (Rule 249)
Rule 249 prescribes Form 170 as the standard format for the registered valuer’s report under Section 514(3). This is an entirely new form-the old Income Tax Rules, 1962 did not prescribe a specific form for valuation reports (the format was determined by the old Rule 8A and practice conventions).
The report must include:
- Valuer’s registration details (name, registration number, asset class, authority)
- Assessee details (name, PAN, address)
- Asset description (detailed physical and legal description)
- Valuation methodology (comparable sales, income capitalisation, cost approach, DCF, etc.)
- Date of valuation and effective date
- Valuation conclusion with supporting calculations
- Certification and declaration by the registered valuer
The standardised form ensures consistency, reduces disputes with the IT Department, and provides a clear evidentiary framework when valuations are challenged during assessment proceedings.
Transitional Provisions for Existing Valuers
Rule 246(2)-(4) provides important transitional provisions:
- Pending applications: If a valuer’s application was pending before the old authorities immediately before 1 April 2026, and the application includes qualifications matching the new Rule 247 categories (Sl. Nos. 1, 5, 6, 7, 8, and 10), it may be treated as valid-provided the applicant pays an additional fee of Rs 5,000 within 6 months from the commencement of the IT Act, 2025.
- Qualification mismatch: If the pending application does not include qualifications as specified under the new Rule 247, a fresh application must be filed in Form 169. The fee already paid (under the old regime) is adjusted against the Rs 10,000 fee.
- Ineligibility refund: If a person has become ineligible for registration due to the qualification requirements under the new Rule 247, the fee already paid under the old application is refundable.
These provisions ensure a smooth transition from the old valuer registration framework (which relied on Wealth Tax Act definitions and Rule 8A of IT Rules, 1962) to the new self-contained Section 514 framework.
IT Act Valuer vs Companies Act Valuer: Key Differences
| Aspect | IT Act (Section 514 / Rules 246-249) | Companies Act (Section 247 / IBBI Rules) |
|---|---|---|
| Registration authority | PCIT/CCIT or PDGIT/DGIT (income tax authorities) | IBBI (Insolvency and Bankruptcy Board of India) |
| Application form | Form 169 (new) with Rs 10,000 fee | IBBI prescribed form with separate fee structure |
| Qualification basis | Rule 247: 10 asset-class-specific qualifications | Companies (RV) Rules 2017: 3 asset classes (land & building, plant & machinery, securities/financial assets) |
| Report format | Form 170 (standardised for IT purposes) | IBBI/SRO prescribed format (for Companies Act purposes) |
| Fee regulation | Progressive scale under Rule 248 (0.5% to 0.05%) | No statutory fee cap; market-determined |
| Acceptance | Mandatory for IT proceedings (capital gains, gift, assessment) | Mandatory for Companies Act transactions (share allotment, amalgamation, IBC) |
| Overlap | A valuer registered under both frameworks can serve dual purposes, reducing duplication | Same person can also register under Section 514 for IT purposes |
Common Mistakes to Avoid
Mistake 1: Filing old format application instead of Form 169. From 1 April 2026, Form 169 is the only prescribed form for valuer registration under Section 514. Applications in the old format (which was unstructured) will not be accepted.
Mistake 2: Not paying the Rs 10,000 fee with the application. The fee is non-refundable and must accompany the application. Incomplete applications without fee payment will be rejected.
Mistake 3: Applying for asset classes without meeting Rule 247 qualifications. Each asset class has specific educational and experience requirements. Applying without meeting them results in rejection and wasted fee (no refund for this reason).
Mistake 4: Issuing valuation reports without using Form 170. Under Rule 249, the valuation report must be in Form 170. Reports in non-prescribed formats may be rejected by the Assessing Officer during assessment proceedings.
Mistake 5: Charging fees above the Rule 248 scale. The progressive fee scale represents the statutory maximum. Charging above these rates is a regulatory violation and can lead to disciplinary action.
Key Takeaways
Rules 246-249 of the IT Rules, 2026 create a comprehensive, self-contained registered valuer framework under Section 514 of the IT Act, 2025. Rule 246 prescribes the application process (Form 169, Rs 10,000 fee, 6-month disposal). Rule 247 defines qualifications for 10 asset classes covering immovable property, agricultural land, plantations, forests, mines, securities, plant/machinery, jewellery, art, and actuarial interests. Rule 248 introduces a progressive fee scale (0.5% to 0.05%) with a Rs 5,000 minimum. Rule 249 prescribes Form 170 as the standardised valuation report format.
Both Form 169 (application) and Form 170 (valuation report) are entirely new-not prescribed under the old rules. Transitional provisions protect pending applicants with a Rs 5,000 top-up fee mechanism and qualification adjustment pathway. Professionals already registered under the Companies Act (Section 247 / IBBI) should consider dual registration under Section 514 to serve both regulatory frameworks without duplication.
Considering Valuer Registration Under the New Rules?
The valuer registration framework under Rules 246-249 introduces new forms, a structured fee scale, and explicit qualification requirements for the first time under the IT Act. Whether you’re a practicing CA seeking to register for securities/business asset valuations, an engineer applying for plant/machinery, or a professional navigating the transitional provisions, the process requires careful attention to Rule 247 qualifications and Form 169 preparation.
Explore our income tax compliance services (https://www.patronaccounting.com/income-tax-return) for valuer registration advisory, Form 169 preparation, qualification verification, and valuation report review under the new Act.
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