Section 514 of the Income Tax Act, 2025 establishes a framework for the registration of valuers for income-tax purposes. The Income Tax Rules, 2026, through Rule 247, prescribes detailed qualifications and eligibility conditions for registration as a valuer for different classes of assets. Understanding these requirements is essential for professionals seeking to offer valuation services.
The Regulatory Framework
Section 514
Section 514 provides that:
- The Principal Chief Commissioner or Chief Commissioner, or the Principal Director General or Director General, shall maintain a register of valuers
- Any person possessing prescribed qualifications may apply for registration
- Registered valuers must conduct impartial and true valuations
- Valuation reports must be in the prescribed form
Rule 247
Rule 247 specifies the qualifications for registration as valuers for different classes of assets. The rule categorises valuers according to specific asset classes and prescribes educational qualifications, professional experience, and eligibility conditions for each category.
Asset Classes and Qualifications
Immovable Property
Valuers of immovable property (other than agricultural lands, plantations, forests, mines, and quarries) must:
- Be a graduate in civil engineering, architecture, or town planning from a recognised university
- OR be a post-graduate in valuation of real estate
- OR possess a qualification recognised by the Central Government for recruitment to superior services in civil engineering, architecture, or town planning
AND
- Have retired or resigned after rendering service for not less than ten years (or two years, if possessing a post-graduate degree in valuation of real estate) as a valuer, architect, or town planner
- OR have been in practice as a consulting engineer, valuer of real estate, surveyor, or architect for not less than ten years (or two years, if possessing a post-graduate degree) with gross receipts of not less than ₹1,00,000 in any three of the five preceding years
Agricultural Lands
Valuers of agricultural lands must be:
- A graduate in agricultural science from a recognised university with five years of experience as a farm valuer
- OR a person formerly employed as a Collector, Deputy Collector, Settlement Officer, Land Valuation Officer, Superintendent of Land Records, Agricultural Officer, Registrar, or equivalent, with five years of service
Plantations (Coffee, Tea, Rubber, Cardamom)
Valuers of plantations must have:
- Owned or acted as manager of a plantation of not less than four hectares (cardamom) or forty hectares (other plantations) for five years
- OR served as a Collector, Deputy Collector, or equivalent officer with five years of service, including three years in plantation areas
Forests
Valuers of forests must have retired or resigned after rendering service for not less than five years in a gazetted post requiring specialised knowledge in forestry.
Mines and Quarries
Valuers of mines and quarries must:
- Be a graduate in mining from a recognised university
- Have retired or resigned after rendering service as a mining engineer for not less than ten years in a gazetted post or a post carrying remuneration of not less than ₹50,000 per month
Stocks, Shares, Debentures, Securities, and Business Assets
Valuers of financial assets must:
- Be a member of ICAI, ICMAI, or ICSI
- OR possess a Master of Business Administration or Post Graduate Diploma in Business Management with specialisation in Finance
- OR be a post-graduate in Finance
AND
- Have been in practice for ten years with gross receipts of not less than ₹1,00,000 in any three of the five preceding years
- OR have retired or resigned after rendering service for ten years in the field of audit and accounts or taxation work
Machinery and Plant
Valuers of machinery and plant must:
- Be a graduate or post-graduate in Mechanical, Electrical, Electronic and Communication, Electronic and Instrumentation, Production, Chemical, Textiles, Leather, Metallurgy, or Aeronautical Engineering
- OR possess a qualification recognised by the Central Government for recruitment to superior services in mechanical or electrical engineering
AND
- Have retired or resigned after rendering service for not less than ten years (or two years, if possessing a post-graduate degree in valuation of machinery and plant) as an engineer or valuer
- OR have been in practice as a consulting engineer or valuer for ten years with gross receipts of not less than ₹1,00,000 in any three of the five preceding years
Jewellery
Valuers of jewellery must have been, for a period of not less than five years, a sole proprietor or partner in a partnership firm carrying on jewellery business with:
- An average annual turnover of not less than ₹50 lakh
- OR profit, including fees for valuation, of not less than ₹5 lakh in the last three of the five preceding years
Works of Art
Valuers of works of art must have:
- Specialisation by virtue of academic and professional pursuits in the particular line of art
- Served as Director General or Superintending Archaeologist of the Archaeological Survey of India, Director of National Museum, principal of a Government School of Art, or member of the Art Purchase Committee of specified museums or the Lalit Kala Akademi
Life Interest, Reversions, and Interest in Expectancy
Valuers must be:
- A graduate of a recognised university
- Have been in practice as an actuary for ten years, OR rendered continuous service for ten years as an actuary under Government or in the Life Insurance Corporation of India
Disqualifications
No person shall qualify for registration as a valuer if:
- Dismissed or removed from Government service
- Convicted of an offence connected with any income-tax proceeding or on whom a penalty has been imposed
- An undischarged insolvent
- Convicted of any offence and sentenced to a term of imprisonment
- Found guilty of misconduct in professional capacity
- A minor
- Declared to be of unsound mind
- An undischarged bankrupt or has applied to be adjudicated as bankrupt
Application Process
Form 169
The application for registration as a valuer must be made in Form No. 169, accompanied by a non-refundable fee of ₹10,000【246†L0-L1】.
Disposal Timeline
The competent authority must dispose of the application within six months from the end of the month in which such application is made【247†L0】.
Registration Validity
Registered valuers must qualify in an examination within a specified period; failure results in cancellation of registration【246†L0】.
Valuation Report
The valuation report prepared by a registered valuer must be in Form No. 170【249†L0】.
Expert Legal Guidance
Understanding registered valuer requirements is essential for professionals seeking to offer valuation services and for taxpayers engaging valuers. Anuj Desai & Associates provides expert advisory services on Direct Tax Code compliance, helping professionals navigate the registration process and taxpayers engage appropriate registered valuers.