Valuation in India has a rich history that dates back to ancient times. In the ancient period, valuation was done mainly for the purpose of taxation and land measurement. Later on, during the Mughal period, valuation was done to determine the value of goods and services for taxation purposes.

During the Vedic period, land was the primary form of wealth and was valued based on its fertility, proximity to water, and other factors.

During the medieval period, India was known for its advanced economy and sophisticated systems of trade and commerce. The Mughal Empire established a system of land revenue administration, which included the assessment of land values and the collection of taxes based on those values.

In the modern era, valuation in India has been influenced by British colonialism. The British introduced the concept of property ownership and introduced a system of land surveys and land records. The first formal property valuation legislation in India was the Bengal Tenancy Act of 1885, which established a system for the assessment of rents and the determination of land values.

During the British rule, valuation gained importance as the British government required the valuation of land for revenue collection. The first Valuation Act was passed in India in 1850, which provided the framework for the valuation of land for revenue collection.

In the early 20th century, valuation gained significance in India with the development of the real estate industry. The Indian government introduced the Indian Stamp Act in 1899, which required the valuation of property for the purpose of stamp duty.

After India gained independence in 1947, the government took steps to modernize the country’s valuation system. The government established the Income Tax Act in 1961, which provided for the valuation of property for tax purposes. The government also established the Indian Standards in 1978, which provided guidelines for the valuation of assets, which required the valuation of assets for the purpose of taxation.

In recent years, with the growth of the Indian economy and the increased importance of the real estate industry, valuation has become even more significant. The Indian government has introduced various reforms to improve the valuation process, including the Real Estate (Regulation and Development) Act of 2016, which aims to regulate the real estate industry and provide transparency in property transactions. The Securities and Exchange Board of India (SEBI) also regulates valuation in the securities markets.

Today, valuation is an important part of India’s economy, and the country has a well-developed system of valuation professionals and organizations. Today, valuation plays a critical role in various industries in India, including real estate, finance, insurance, and taxation. Valuation professionals in India are highly skilled and trained to provide accurate and reliable valuations for a wide range of assets.

Valuation is required for several reasons:

1. Investment decisions: Valuation helps investors make informed investment decisions by determining the value of an asset or company. This information can help investors decide whether an asset is worth buying, holding, or selling.
2. Mergers and Acquisitions: Valuation is an essential part of mergers and acquisitions. Buyers need to know the value of the company they are acquiring to ensure that they are not overpaying for it. Similarly, sellers need to know the value of their company to ensure that they are getting a fair price for it.
3. Financial Reporting: Companies need to report the value of their assets accurately in their financial statements. Valuation helps companies determine the fair value of their assets, which is essential for accurate financial reporting.
4. Taxation: Valuation is required for taxation purposes, such as calculating property taxes, inheritance taxes, or capital gains taxes.
5. Litigation: Valuation is also required in legal disputes, such as divorce settlements or business disputes. In such cases, an accurate valuation can help resolve the dispute fairly.

Overall, valuation is a crucial process that helps individuals and businesses make informed decisions about their investments, acquisitions, financial reporting, taxation, and legal disputes.