Valuation of Real Property

Purpose: Loan / Mortgage Security; Why a Valuation Report Is Mandatory: Bank lends only up to LTV % of Realisable Sale Value (RSV). Valuer's report is the primary security document and goes into the credit-folder.

Purpose: Sale / Purchase; Why a Valuation Report Is Mandatory: Buyer and seller need an independent benchmark; also drives stamp-duty under the State Stamp Act + Sec. 50C IT Act.

Purpose: Taxation — Capital Gains (Sec. 50C / 56(2)(x)), Stamp-Duty, legacy Wealth Tax; Why a Valuation Report Is Mandatory: "Higher of consideration vs Stamp-Value" rule; FMV-as-on-1-Apr-2001 for indexation.

Purpose: Accounting / Financial-Reporting; Why a Valuation Report Is Mandatory: Ind-AS 16, 36, 40 — revaluation model, impairment, fair-value of investment property; statutory audit; IBBI-registered valuer required for companies.

Purpose: Insurance; Why a Valuation Report Is Mandatory: Reinstatement / Replacement Cost drives sum-insured under standard fire policy; underinsurance triggers average-clause.

Purpose: Dispute Resolution; Why a Valuation Report Is Mandatory: Partition suits, divorce settlement, land-acquisition (RFCTLARR Act 2013), SARFAESI auction reserve-price, IBC liquidation value, arbitration.

categorised under Wealth-Tax Rule 8A (legacy) into Immovable Property, Agricultural Land, Plant & Machinery, Jewellery, Business / Shares, etc.

selected through a written declaration, qualifications, three-year cooling-off from being an officer of the bank (RBI MD Apr 2025).