Rule 150 of the Draft Income-tax Rules, 2026 lays down the methodology for determining the fair market value of property under section 247(9). It specifies that the value of immovable property, including land or building or both, shall be based on the value adopted, assessed, or assessable by the Central or State Government authority for stamp duty purposes, along with the cost of construction and improvements as on the relevant valuation date(s). The value of jewellery, archaeological collections, drawings, paintings, sculptures, works of art, and shares or securities referred to in rule 57 shall be determined in accordance with the manner prescribed under rules 56 and 57, treating the valuation date as the date specified in the reference under section 247(9). For properties not covered under these categories, or where such prescribed methods are not feasible, the value shall be the price the property would ordinarily fetch if sold in the open market on the relevant valuation date(s). The rule further mandates that the Valuation Officer, a person registered under section 514, or any approved person or entity to whom a reference is made must submit the valuation report in Form No. 170 to the authorised officer. Overall, the provision establishes clear valuation benchmarks to promote consistency, objectivity, and procedural clarity in search-related valuation proceedings.
Extract of Rule No. 150 of Draft Income-tax Rules, 2026
Rule 150
Valuation under section 247(9) of the Act.
(1) For the purpose of section 247(9), the fair market value of the property shall be determined in the following manner, namely:—
(i) 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(s) on which such property is required to be valued as per the reference made under section 247(9);
(ii) 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 rule 57 and for this purpose the reference to the valuation date in the rule 56 and rule 57 shall be the date(s) on which such property is required to be valued as per the reference made under section 247(9);
(iii) the value of property,
(a) other than those covered in clause (i) and clause (ii), or
(b) where valuation as specified in clause (i) and clause (ii) is not feasible, shall be the price that such property would ordinarily fetch on sale in the open market on the date(s) 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.
