Emerging Role of Registered Valuers Under the Income Tax Bill, 2025: A Legal and Professional Milestone

By Er. Sundeep Bansal
Published in: CEV Techno News, Renowned Newspaper for Engineering & Valuation Practice

For Professionals in Engineering, Valuation, and Land Administration

Introduction

The Income Tax Bill, 2025, marks a major turning point in the landscape of Indian taxation, not only for its structural simplification and modernization but also for its recalibration of procedural rights in valuation matters. Among its notable inclusions is Clause 513, which explicitly grants assessees the right to be represented by a Registered Valuer before Income-tax authorities and the Appellate Tribunal in disputes concerning asset valuation.

This move is more than a legislative formality. It signifies a paradigm shift in tax practice, elevating the role of valuers to that of empowered quasi-legal representatives in highly technical matters. For professionals in the fields of engineering, finance, asset management, and real estate, this development opens new doors — and raises the bar — for how valuation expertise is deployed in tax proceedings.

Understanding Clause 513: An Evolution from Section 287A

At the heart of this development lies a continuity of vision. Clause 513, in many ways, modernizes and refines the procedural right previously articulated in Section 287A of the Income-tax Act, 1961. Both sections recognize that valuation is a domain requiring specialized technical knowledge, best addressed by professionals with domain expertise rather than general tax practitioners alone.

However, Clause 513 brings in a self-contained regulatory mechanism and replaces outdated definitions (previously tied to the Wealth-tax Act, 1957) with a forward-looking system outlined in Section 514 of the new Bill. This aligns the regime with contemporary professional standards, similar to what was introduced under the Companies Act, 2013.

Key Provisions of Clause 513:

Right to Representation: An assessee can appear through a registered valuer in matters concerning the valuation of any asset, before any income-tax authority or the Appellate Tribunal.
Personal Attendance Exception: The right does not extend to cases where the assessee is required to appear in person for examination under oath (Section 246 of the Bill).
Definition of Registered Valuer: Limited to those registered under Section 514 of the new Income Tax Bill — a clear move towards regulatory consolidation.

Strategic Implications for Valuation Professionals

1. Increased Legal Role

With this statutory right now embedded in primary legislation, Registered Valuers (RVs) gain not just procedural legitimacy but an expanded functional role. Valuers will increasingly serve as quasi-legal representatives in valuation disputes, especially those involving complex asset classes, real estate, share valuations, digital assets, or transfer pricing.

2. Modernized Registration Norms

All existing valuers — including those previously recognized under the Wealth-tax Act or Companies Act — will now be required to re-register under Section 514. This is expected to include:

Updated qualification criteria
Continuing Professional Education (CPE) requirements
Stringent ethical and disciplinary frameworks

This shift ensures that only highly qualified, technically proficient valuers will be able to represent assessees, thereby increasing confidence in the valuation process.

3. Professional Opportunities

With representation rights now codified in tax law, registered valuers with a sound understanding of both valuation techniques and income-tax law are likely to see a significant surge in demand. From tax planning to litigation support, RVs can now position themselves as key strategic advisors for businesses and high-net-worth individuals.

Why This Matters: The Legal & Tax Practice Perspective

In valuation-related tax matters — especially those involving property transfers, business reorganizations, or intangibles — the accuracy and defensibility of a valuation can directly impact tax liability. Disputes often arise over valuation methods, assumptions, or asset classification. Until now, such disputes were mostly handled by chartered accountants or legal professionals.

With Clause 513, the law now recognizes the indispensable role of valuers in such proceedings, putting them on equal footing in procedural matters. This serves three purposes:

Improves the quality of evidence submitted to tax authorities
Protects taxpayer rights by ensuring expert representation
Streamlines dispute resolution, reducing reliance on secondary experts during appeals

Implications for Stakeholders

✅ For Assessees

Right to be represented by professionals with deep domain expertise.
Improved ability to challenge arbitrary or incorrect valuation assessments.
Need to ensure their representatives are duly registered under the new regime.

✅ For Valuers

Must update registration under Section 514.
Greater accountability — but also increased prestige and recognition.
Opportunities for practice expansion into tax litigation support and advisory.

✅ For Tax Authorities

Better engagement with qualified professionals.
Necessity to adapt internal procedures and enhance technical training.
Scope for more efficient, evidence-based resolution of valuation disputes.

Transitional Challenges and the Way Ahead

Despite its strengths, the implementation of Clause 513 is not without challenges:

Transition of existing valuers to the new registration framework must be managed smoothly.
Interpretative clarity is required for what constitutes “valuation matters,” especially when multiple issues overlap.
Harmonization with other legal definitions (under Companies Act, SEBI regulations, etc.) must be ensured to avoid regulatory confusion.

Further, valuation standards must evolve to cover emerging asset classes — such as intellectual property, digital currencies, and cross-border interests — which will be central to future disputes. Professional bodies like the IBBI, Various institutes, Organisations, and Council of Engineers & Valuers must collaborate to ensure best practices and global alignment.

A New Chapter for Valuation Professionals

Clause 513 of the Income Tax Bill, 2025, is not just a legislative update — it’s a strategic opportunity for valuation professionals across disciplines. It formalizes their role in the judicial process, raises professional standards, and opens up new avenues in tax representation and dispute resolution.

For aspiring valuers, this is the time to strengthen both technical and regulatory knowledge. For seasoned professionals, the road ahead will demand greater interdisciplinary acumen, particularly in income-tax law, forensic valuation, and expert testimony.

The future belongs to those who can translate numbers into narratives — and defend them in the halls of law.

Disclaimer: This article is intended for educational and professional guidance. For case-specific tax advice, consult a qualified Chartered Accountant or legal advisor.

About the Author:
Er. Sundeep Bansal is a Chartered Engineer and an IBBI Registered Valuer under the Companies Act, with specialization in Real Estate. He regularly advises on complex valuation disputes, tax planning, and regulatory compliance, and is a contributor to leading industry journals.