Rule 55: Valuation Officer reference thresholds
Rule 55 supplies the percentage and amount used in the section 91(1)(b)(i) valuation-reference test: 15% and ₹10 lakh. The parent section determines how that test operates and separately provides other reference routes.
Official notified Income-tax Rules, 2026Need advice on Rule 55?
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.
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Bare law
Rule 55 - Conditions for reference to Valuation Officers under section 91(1)(b)
For the purposes of Section 91(1)(b)(i),– (a) the percentage of the value of the asset shall be 15%; and (b) the amount shall be ten lakh rupees.
Rule breakdown
Use the thresholds with the parent section
Rule 55 prescribes the two figures; section 91(1)(b)(i) supplies the condition concerning the Assessing Officer’s opinion that fair market value exceeds the value claimed by more than the prescribed percentage or amount.
Read the rule and that clause together. The figures are not a general discount from fair market value or a universal permission to understate an asset.
Prescribed percentage and amount
The percentage is 15%, and the monetary amount is ₹10 lakh. The parent clause uses a “more than” comparison and connects the percentage and amount alternatives with “or”.
Keep the claimed value, valuation evidence and the comparison used. Do not rewrite the test as requiring both thresholds simultaneously.
Other valuation-reference routes remain relevant
Section 91 separately addresses a claimed value based on a registered valuer’s estimate that the Assessing Officer considers at variance with fair market value. It also provides the nature-of-asset and other-circumstances route.
Rule 55’s figures apply to its identified clause, not as a blanket limit on every Valuation Officer reference under section 91.
Prepare an evidence-based response
Retain the original valuation, asset description, relevant dates, comparable evidence and the specific statutory ground cited in any proposed reference.
A threshold analysis should be tied to the route actually invoked. Obtain professional advice on the evidence and procedure where a valuation disagreement arises.
Key takeaways
15% and ₹10 lakh
These are the prescribed figures.
Specific statutory route
They apply to section 91(1)(b)(i).
Other routes remain
Do not treat them as a universal bar to referral.
Practical checklist
- Identify the particular section 91 reference route.
- Keep the claimed value and valuation evidence.
- Apply the exact parent comparison.
Avoid
- Do not treat the figures as an automatic valuation discount.
- Do not assume all other statutory reference routes disappear.
FAQs
What figures does Rule 55 prescribe?
15% and ₹10 lakh for the identified section 91 clause.
Must both figures be exceeded together?
The parent clause uses the percentage or amount alternatives; check its exact comparison and the facts.
Do these figures govern every section 91 reference?
No. The parent section contains other reference routes, and Rule 55 is tied to section 91(1)(b)(i).
Glossary
- Prescribed percentage
- 15% under Rule 55(a).
- Prescribed amount
- ₹10 lakh under Rule 55(b).