Valuation report for an Indian flat bought before 2001
By , founder·6 min read·Published 2026-09-19

Short answer: On 17 September 2026 the CBDT notified the Income-tax (Fourth Amendment) Rules, 2026, G.S.R. 822(E). It moves the date by which a valuer already registered under the Wealth-tax Act, 1957 must file an update to stay registered under section 514 of the Income-tax Act, 2025, from 30 September 2026 to 31 March 2027. The same notification moves the matching date for income-tax practitioners under rule 256(4). Rule 246(4) says such a valuer "will continue to be a registered valuer" in the meantime, and the update carries no fee.

The Registered Valuer Update Date Moves to 31 March 2027

On 17 September 2026 the Central Board of Direct Taxes notified the Income-tax (Fourth Amendment) Rules, 2026, G.S.R. 822(E). It moves the date by which a valuer already registered under the Wealth-tax Act, 1957 must file an update to stay registered under section 514 of the Income-tax Act, 2025, from 30 September 2026 to 31 March 2027. The matching date for income-tax practitioners moves the same way. If you are selling a flat your father bought in 1996, the valuer who signs its 1 April 2001 value is the person this rule is about.

Who this is for

The owner abroad selling a flat bought before 1 April 2001, or inherited from a parent who bought it before then. The 2025 Act lets you take the fair market value on 1 April 2001 as your cost in place of the old purchase price. That figure often comes from a registered valuer's report. This notification changes nothing about the tax. It changes the paperwork deadline for the valuer.

What the notification says

The notification is No. 120/2026, F. No. 370142/30/2026-TPL, published in the Gazette of India Extraordinary on 17 September 2026. Rule 1(2)(b) says rules 5 to 8 "shall come into force on the date of their publication in the Official Gazette".

Rule 5 is one line:

In the said rules, in rule 246, in sub-rule (4), for the figures, letters and word "30th September, 2026", the figures, letters and word "31st March, 2027" shall be substituted.

Rule 6 makes the same change in rule 256(4), which covers income-tax practitioners registered under the Income-tax Act, 1961. That one concerns your tax representative, not your valuer.

Rule 7 replaces Form No. 169, the application to register as a valuer under section 514. The new form asks whether the applicant is registered as a valuer under the Wealth-tax Act, 1957, and its note reads: "No fee shall be required, in case of valuers already registered under Wealth-tax Act, 1957." For everyone else the fee stays at Rs. 10,000.

What rule 246(4) governs

Rule 246 of the Income-tax Rules, 2026 (G.S.R. 198(E), 20 March 2026) sets out how a person applies to be a registered valuer. Sub-rule (4), as amended, reads:

Where a person is already registered as a valuer under Wealth-tax Act, 1957 (27 of 1957) holding a valid certificate of registration as on the 31st March, 2026, he will continue to be a registered valuer under section 514, but that he is required to update his details by filing application as referred in sub-rule (1) by the 31st March, 2027 ...

Sub-rule (5) says that update "may not be accompanied with any fee". So a valuer registered under the old law stays registered under the new one, and now has six more months to file the update.

The rules do not say what happens to a valuer who misses the date. We found no text saying reports signed before the update are invalid, and this page does not suggest it.

Why it touches a sale

Section 90(9)(a) of the Income-tax Act, 2025 lets you take, for an asset you acquired before 1 April 2001, "the cost of acquisition of the asset to the assessee or its fair market value on the 1st April, 2001, at the option of the assessee". Section 90(9)(b) gives the same option on inherited property where the previous owner acquired it before that date. Section 90(10) caps that fair market value, for land or a building, at the stamp duty value on 1 April 2001 "wherever available".

Section 91(1)(a) is where the valuer comes in. The Assessing Officer may refer the valuation to a Valuation Officer "if the value of the asset claimed by the assessee is as per the estimate by a registered valuer" and the officer thinks it is at variance with fair market value. A registered valuer is a person registered under section 514. The report is in Form No. 170 under rule 248(4).

Rule 248(1) caps what a registered valuer may charge: half a percent on the first Rs. 5 lakh of value, a fifth of a percent on the next Rs. 10 lakh, a tenth of a percent on the next Rs. 40 lakh, and a twentieth of a percent on the rest. Rule 248(3) lets the valuer charge Rs. 5,000 where the scale comes to less.

What to do with it

  1. When you engage a valuer for a 1 April 2001 report, ask for the section 514 registration details and the asset class, which for a flat is class 1, immovable property.
  2. If the valuer holds a Wealth-tax Act registration, the update is now due by 31 March 2027. It is fair to ask whether it has been filed.
  3. Check the fee against the rule 248 scale before you pay.

The full working of cost on old family property, including the stamp duty cap, is in capital gains on inherited property. This page reports what the notification says. It is not tax advice on your sale.

FAQ

What did G.S.R. 822(E) of 17 September 2026 change? It moved the date in rule 246(4) and rule 256(4) of the Income-tax Rules, 2026 from 30 September 2026 to 31 March 2027, and replaced Form No. 169 and Form No. 171. Rules 2 to 4 also amend rules 160, 176 and 225, with effect from 1 April 2026.

Who has to file by 31 March 2027? A valuer registered under the Wealth-tax Act, 1957 with a valid certificate on 31 March 2026 must file the Form No. 169 update by 31 March 2027. An income-tax practitioner registered under the Income-tax Act, 1961 on that date must file the rule 256 update by the same day.

Does an old Wealth-tax registered valuer still count as a registered valuer? Rule 246(4) says such a person "will continue to be a registered valuer under section 514", subject to filing the update. The rules do not say what follows if the date is missed.

Is a registered valuer's report compulsory to use the 1 April 2001 value? Section 90(9) of the Income-tax Act, 2025 gives the option without requiring a registered valuer's report. Section 91(1)(a) deals with the case where the value claimed is a registered valuer's estimate and the Assessing Officer disputes it.

What can a registered valuer charge? Rule 248(1) caps the fee on a sliding scale from half a percent on the first Rs. 5 lakh down to a twentieth of a percent above Rs. 55 lakh, with a Rs. 5,000 floor under rule 248(3).

Saurabh Garg, founder, 66 MG Road

Sources

Information on this page is as on 2026-09-19. Rules, rates, deadlines and government portals change without notice, so verify against the official source before you act. This page is for information only. It is not tax or legal advice, and it is not a substitute for a qualified adviser who knows your position.