Rule 150: Valuation method and Form 170 in a search reference
Rule 150 specifies how property is valued for the identified search-related reference. It distinguishes immovable property, the listed Rule 57 assets and the residual or infeasible-method cases. The reference controls the valuation date or dates.
Official notified Income-tax Rules, 2026Need advice on Rule 150?
This article is for general information. Read the official Rules and applicable Act amendments, including the Taxation and Other Laws (Amendment) Act, 2026. If you need professional advice for your situation, contact Bizeneed.
On this page
Bare law
Rule 150 - Valuation under section 247(9)
(1) For the purposes of section 247(9), the fair market value of the property shall be determined in the following manner: — (a) the value of an immovable property, being land or building or both, shall be in accordance with the value adopted or assessed or assessable by any authority of the Central Government or a State Government for the purpose of payment of stamp duty in respect of such immovable property, along with the cost of construction and improvements, if any, on the date or dates on which such property is required to be valued as per the reference made under section 247(9); (b) the value of jewellery, archaeological collections, drawings, paintings, sculptures, any work of art, shares or securities referred to in rule 57, shall be the value determined in the manner provided in said rule and for this purpose, the reference to the valuation date in the rules 56 and 57 shall be the date or dates on which such property is required to be valued as per the reference made under section 247(9); and (c) the value of property, — (i) other than those covered in clauses (a) and (b); or (ii) where valuation as specified in the said clauses is not feasible, shall be the price that such property would ordinarily fetch on sale in the open market on the date or dates on which such property is required to be valued as per the reference made under section 247(9).
(2) The Valuation Officer, the person registered under section 514, or any person or entity approved under section 247(9), to whom the reference for valuation has been made by the authorised officer under the provisions of section 247(9), shall submit the report of valuation in Form No. 170 to such authorised officer.
Rule breakdown
Use the date or dates in the reference
Each method is applied to the date or dates for which valuation is required under the section 247(9) reference.
Do not substitute today’s price or the report-signing date without checking the actual reference.
Land and buildings have a specified basis
The immovable-property limb refers to the value adopted, assessed or assessable for stamp duty, along with construction and improvement cost where applicable on the relevant dates.
Collect the relevant stamp-duty valuation material and supported construction and improvement records for the valuer.
The listed movable assets follow Rule 57
Jewellery, archaeological collections, drawings, paintings, sculptures, works of art, shares and securities referred to in Rule 57 use that rule’s method. For this purpose the valuation-date references in Rules 56 and 57 are the dates specified by the search reference.
Identify the precise asset class and valuation method instead of applying a single discount or market-price assumption to all assets.
The open-market fallback has a defined scope
For property outside the first two categories, or where those methods are not feasible, use the price the property would ordinarily fetch in an open-market sale on the required dates.
Document why the fallback category applies and the evidence supporting the value. The fallback is not simply an elective alternative whenever it gives a preferred result.
The report is Form 170
The valuation officer or other stated approved person or entity receiving the reference submits the valuation report in Form 170 to the authorised officer.
Keep the reference, asset description, date-specific evidence, method and final report together.
Key takeaways
Reference dates control
Value the property at the required date or dates.
Asset-specific methods
Land/buildings and Rule 57 assets have specified treatment.
Form 170 report
Submit the prescribed valuation report to the authorised officer.
Practical checklist
- Preserve the exact valuation reference.
- Collect asset-specific, date-specific evidence.
- Document any fallback-method basis.
Avoid
- Do not select a method solely for a preferred valuation result.
FAQs
Can the valuer always use the current market price?
The rule requires the date or dates specified in the reference.
When does the open-market fallback apply?
For other property, or where the specified methods are not feasible.
Which report form is prescribed?
Form 170.
Glossary
- Valuation reference date
- The date or dates at which the property must be valued under the section 247(9) reference.