Rules 248 and 249 of the Draft Income-tax Rules, 2026 prescribe the fee structure and reporting format for registered valuers under Section 514 of the Income-tax Act. Rule 248 introduces a structured scale of fees that registered valuers may charge for valuing assets. The rule provides a progressive fee ceiling based on the value of the asset being assessed. A maximum fee of 0.5% may be charged on the first ₹5,00,000 of the asset value, 0.2% on the next ₹10 lakh, 0.1% on the next ₹40 lakh, and 0.05% on the remaining value. These rates represent the upper limit of fees that valuers can charge, ensuring that valuation services remain regulated and reasonable for taxpayers. The rule further clarifies that when multiple assets are valued at the request of the same assessee, they will be treated as a single asset for the purpose of calculating fees. Additionally, where the calculated fee is less than ₹5,000, the valuer is permitted to charge a minimum fee of ₹5,000.
Rule 249 complements this provision by prescribing a uniform reporting format for valuation. It mandates that every valuation report submitted by a registered valuer must be prepared in Form No. 170, thereby standardising documentation and improving consistency in tax-related valuation reporting. Together, these provisions aim to bring transparency, uniform fee limits, and standardised reporting in the valuation process, thereby strengthening regulatory oversight and ensuring greater reliability in asset valuation under the income-tax framework.
Extract of Rule No. 248 and 249 of Draft Income-tax Rules, 2026
Rule 248
Scale of fees to be charged by a registered valuer under section 514(2) of the Act.
(1) Subject to the provisions of sub-rules (2) and (3), the fees to be charged by a registered valuer for valuation of any asset shall not exceed the amount calculated at the following rates, namely,––
| (a) | On the first Rs. 5,00,000 of the asset as valued | 1/2 per cent of the value; |
| (b) | On the next Rs. 10 lakhs of the asset as valued | 1/5 per cent of the value; |
| (c) | On the next Rs. 40 lakhs of the asset as valued | 1/10 per cent of the value; |
| (d) | On the balance of the asset as valued | 1/20 per cent of the value. |
(2) Where two or more assets are required to be valued by a registered valuer at the instance of an assessee, all such assets shall be deemed to constitute a single asset for the purposes of calculating the fees payable to such registered valuer.
(3) Where the amount of fees calculated in accordance with sub-rules (1) and (2) is less than Rs. 5,000, the registered valuer may charge Rs. 5,000 as his fees.
Rule 249
Form of report of valuation by registered valuer under section 514(3) of the Act.
The report of valuation by a registered valuer in respect of any asset shall be in the Form No. 170.
