Major development for IBBI Registered Valuers specializing in Land & Building (L&B), opening doors to government assignments in high-stakes search and seizure cases. Under the Income Tax Act 2025, Section 247 now allows valuers registered under any law to provide valuation services to the Income Tax Department during such operations.
Section 247 of Income Tax Act 2025 an overview
Section 247 of the Income Tax Act 2025 governs search and seizure powers, enabling authorized officers to act on “reason to believe” that undisclosed income or assets exist. This provision modernizes previous laws, extending to digital records and infrastructure without granting blanket AI surveillance powers, as clarified by the Finance Ministry. Key subsections (5) and (9) permit requisitioning services from Valuation Officers, valuers under section 514, or “any person or entity registered by or under any law in force,” approved by senior commissioners.
The authorised officer may requisition the services of any person to assist him for all or any of the purposes& during the course of the search or seizure, or within sixty days from the date on which the last of the authorisations for search was executed, make a reference to a Valuation Officer, or any person registered as a valuer under section 514, or any person or entity registered by or under any law in force, as may be approved by the Principal Chief Commissioner or the Chief Commissioner or the Principal Director General or the Director General, in accordance with the procedure as may be prescribed in this regard, requiring him to-
(a) estimate the fair market value of the property in the manner, as may be prescribed; and
(b) submit a report of the estimate to the authorised officer or the Assessing Officer, within sixty days from the date of receipt of such reference.
Role of IBBI Registered Valuers
IBBI Registered Valuers (L&B) operate under Section 247 of the Companies Act 2013 and Companies (Registered Valuers and Valuation) Rules 2017, meeting rigorous fit-and-proper and experience criteria. Their inclusion parallel to Income Tax section 514 valuers elevate their professional status, allowing participation in departmental valuations for land, buildings, and immovable properties.
Application Process and New Income Tax Rules 2026
Income Tax Rules 2026, notified on March 20, 2026, introduce Form 85 (Serial Nos. 6 & 7) for applications under sections 247(5) and (9). Valuers submit via this form, streamlining empanelment with the department for search and seizure related work. Rule 247 details qualifications, such as educational backgrounds and experience for asset-specific registration under section 514.
Effective April 1, 2026, these rules apply to Tax Year 2026-27 onward, phasing out older forms for new proceedings.
Professional and Economic Impact
This expansion creates new revenue streams for IBBI valuers, previously limited to corporate or insolvency roles, now tapping government contracts. It enhances valuation accuracy in enforcement & reduc disputes over asset values in tax, opportunities, strengthening compliance and professional growth recoveries.
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