The Section 34AB of the Wealth Tax Act 1957 established the statutory framework for the Government Approved Valuer and professional valuation of specified taxable assets. The framework encompasses eight wealth tax asset categories, supported by prescribed qualifications, professional experience and personal accountability for the valuation certificate.
From Land & Buildings and Plant & Machinery to Jewellery, Securities, Business Assets, Bullion, Works of Art and Leasehold Improvements.
The Section 34AB framework established a professional registration system for valuation of taxable assets, requiring relevant qualifications, practical experience and professional accountability.
The Section 34AB of the Wealth Tax Act 1957 established the Government Approved Valuer or registered valuer scheme for professional valuation of taxable assets.
The Central Board of Direct Taxes (CBDT) administers the registered valuer registration framework.
The registered valuer must hold the recognized professional qualification relevant to the specific asset category together with the prescribed minimum professional experience.
The registered valuer carries personal professional liability for the FMV certificate issued and operates within the prescribed professional standards and accountability framework.
The practice may also maintain professional indemnity insurance as part of its professional risk framework.
Category I covers residential property, commercial property, urban land, industrial property, agricultural land where applicable, leasehold property and development rights.
Category II covers industrial plant, machinery, equipment, manufacturing plant, power plant, engineering equipment and medical equipment.
The Section 34AB framework extends beyond property and machinery into specialised financial, business and precious-asset valuation.
Covers gold, silver and platinum jewellery, diamonds, precious stones, ornaments and bullion in jewellery form.
Metal weight × hallmark purity × current day metal rate, together with gemstone appraisal using the 4Cs — carat weight, cut, colour and clarity.
Covers listed equity shares, unquoted equity shares, preference shares, debentures, bonds, government securities and NCDs.
Listed shares use the closing price on recognised stock exchanges such as BSE and NSE. Unquoted equity may use the Rule 11UA DCF or book-value NAV method.
Covers business stocks and inventories, partnership-firm interests, AOP interests, business goodwill and business capital.
Includes Rule 11UA, Rule 8, NAV methodology and earning capitalisation methodology where applicable.
Covers gold bars, coins and biscuits, silver bullion, platinum bullion and precious metals in non-jewellery form.
Metal weight × hallmark purity × current IBJA rate, using the applicable INR-per-gram market reference.
Covers paintings, sculptures, drawings, photographs, prints, antiques and archaeological collections.
Covers improvements made by the lessee to leased property, fit-outs and installed improvements.
The IBBI Registered Valuer scheme under Section 247 of the Companies Act 2013 aligns with the professional asset-class structure established through the registered valuation framework.
Speak with A2Z Valuers about property, jewellery, securities, business assets, bullion, works of art or another specialised asset requiring professional valuation.