Chapter XXIII - Miscellaneous
Section 514
Section 514: registration of valuers
Section 514 lays out the process for a person to become a "registered valuer" under the Act - the register the tax authorities must maintain, who can apply, and the declaration an applicant must make about how they will carry out valuations.
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This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) The Principal Chief Commissioner or Chief Commissioner, or the Principal Director General or Director General, shall maintain a register of valuers in which the names and addresses of persons registered under sub-section (2) shall be entered.
(2) Any person, possessing such qualification for valuing such class of assets, as may be prescribed, may apply to the Principal Chief Commissioner or Chief Commissioner, or the Principal Director General or Director General, for getting registered as a valuer, in such form, verified in such manner and accompanied by such fee, as may be prescribed, along with a declaration stating that the applicant will––
(a) conduct an impartial and true valuation of any asset required to be valued;
(b) furnish a valuation report in the prescribed form;
(c) charge fees not exceeding the prescribed rate or rates; and
(d) refrain from undertaking the valuation of any asset in which such person has a direct or indirect interest.
(3) The valuation report prepared by a registered valuer for any asset shall be in such form and verified in such manner, as may be prescribed.
Introduction
Section 514 provides for the register and registration of valuers, with qualifications, form, verification and fee to be prescribed for classes of assets.
The applicant’s declaration addresses impartiality, report form, fee limits and avoidance of assets in which the valuer has a direct or indirect interest.
Key takeaways
Register maintained by senior authority
The specified Chief Commissioner or Director General level authority maintains names and addresses of registered valuers.
Qualifications depend on asset class
A person must hold prescribed qualifications for the relevant class of assets.
Impartiality commitment
The required declaration includes true and impartial valuation and avoiding direct or indirect interests.
Report and fee rules
The report form, verification and fee limits are prescribed.
Register of valuers
The Principal Chief Commissioner or Chief Commissioner, or the Principal Director General or Director General, must maintain a register of valuers, recording the names and addresses of persons registered under sub-section (2).
Applying for registration
A person possessing the prescribed qualification for valuing a prescribed class of assets may apply to the Principal Chief Commissioner or Chief Commissioner, or the Principal Director General or Director General, for registration as a valuer, in the prescribed form, verified in the prescribed manner, and accompanied by the prescribed fee, along with a declaration that the applicant will:
- conduct an impartial and true valuation of any asset required to be valued;
- furnish a valuation report in the prescribed form;
- charge fees not exceeding the prescribed rate or rates; and
- refrain from undertaking the valuation of any asset in which such person has a direct or indirect interest.
Form of the valuation report
The valuation report prepared by a registered valuer for any asset must be in the prescribed form and verified in the prescribed manner.
Step-by-step flow for registration under Section 514
- 1
Does the applicant have the prescribed qualification for valuing the class of assets?
The qualifications are left to rules (Section 514(2)).
- No: The person cannot apply for that class of assets.
- Yes: Go to the next step.
- 2
Apply to the right authority
The application goes to the Principal Chief Commissioner or Chief Commissioner, or the Principal Director General or Director General, in the prescribed form, verified as prescribed and with the prescribed fee.
- 3
Give the declaration
The applicant declares that they will (a) value impartially and truly, (b) give the valuation report in the prescribed form, (c) charge fees not above the prescribed rate or rates, and (d) not value any asset in which they have a direct or indirect interest.
- 4
Entry in the register
Under Section 514(1), the authority keeps a register of valuers with the names and addresses of persons registered.
- 5
Prepare each valuation report as prescribed
Under Section 514(3), every report by a registered valuer is in the prescribed form and verified in the prescribed manner.
Practical checklist
Do
- Check the prescribed qualifications for the intended asset class.
- Review possible direct or indirect interests before accepting a valuation engagement.
Avoid
- Do not assume registration for one asset class necessarily covers another.
Illustrative example
Worked example: an engineer seeking registration
Hypothetical facts (illustration only, not a real taxpayer): Mr. Sen, a civil engineer, wants to be registered to value immovable property. Assume he holds the qualification prescribed for that class of assets. After registration, a client asks him to value a flat in which his brother holds a share.
Eligibility
He has the assumed prescribed qualification, so he may apply.
Application
He applies to the Principal Chief Commissioner or Chief Commissioner, or the Principal Director General or Director General, in the prescribed form, with the prescribed fee and verification.
Declaration
He gives the four declarations in Section 514(2)(a) to (d).
The flat
His brother's share may give Mr. Sen an indirect interest in the flat. Under his declaration in Section 514(2)(d), he should not take up this valuation.
Outcome
- Once his name is entered in the register, he is a registered valuer for Section 513.
- His fees for any valuation cannot exceed the prescribed rate or rates.
Frequently asked questions
What must an applicant declare to become a registered valuer?
Under Section 514(2), the applicant must declare they will conduct impartial and true valuations, furnish reports in the prescribed form, charge fees not exceeding the prescribed rate, and not value any asset in which they have a direct or indirect interest.
Who maintains the register of valuers?
The Principal Chief Commissioner or Chief Commissioner, or the Principal Director General or Director General.
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Talk to our tax team about this sectionLast updated 9 October 2026