VALUERS ALERT

INCOME TAX DEPARTMENT SEEKS FRESH COMPLIANCE UNDER SECTION 514

EXISTING VALUERS MUST RE-APPLY IN PRESCRIBED FORMAT

May 5, 2026: The Office of the Principal Chief Commissioner of Income Tax, Odisha, has issued a communication on the filing of applications under Section 514 of the Income Tax Act, 2025, which affects the valuation profession across India. The directive has major implications for valuers previously registered under the Wealth-tax Act, 1957, and now transitioning into the new regulatory framework.

Background and Regulatory Shift

As per Rule 246(4) of the Income Tax Rules, 2026, individuals who were already registered as valuers under the erstwhile Wealth-tax Act, 1957, and held valid registration as of March 31, 2026, are allowed to continue as registered valuers under Section 514 of the Income Tax Act, 2025. However, this continuation is not automatic and is subject to compliance requirements.

The department has clarified that such valuers are required to update their registration details by filing an application as prescribed under sub-rule (1) within the stipulated deadline of September 30, 2026. Upon successful submission and verification, their registration will be formally recognized under the new Act.

Case in Focus: Council Member Receives Communication Notice

In the present instance, the communication was addressed to Mr S. Setty, a valued member of the Council of Engineers & Valuers, highlighting the practical implications of non-compliance with the updated provisions.

It was observed by the department that the application submitted by him on April 22, 2026, did not conform to the requirements of Section 514 and Rule 246(4) of the Income Tax Rules, 2026. This serves as a crucial example for fellow professionals, emphasising that even experienced and registered valuers must strictly adhere to the revised procedural framework.

Directive for Re-Submission

To address the discrepancy, the Income Tax Department has instructed the applicant to:

Re-submit the application in Form No. 169, and
Attach all relevant supporting documents as required under the rules

This step is mandatory to ensure that the application can be duly processed and the valuer’s registration status regularized under Section 514.

Key Takeaways for Valuers

Members of the valuation community, particularly those affiliated with professional bodies such as the Council of Engineers & Valuers, should take careful note of the following:

Transition Compliance is Mandatory: Existing registration under the Wealth-tax Act does not suffice without fresh filing.
Correct Form is Crucial: Applications must be submitted strictly in Form No. 169.
Documentation Matters: Incomplete or non-compliant submissions may lead to rejection or delays.
Deadline Sensitivity: The last date for compliance is September 30, 2026—missing this could jeopardize registration status.
Professional Vigilance Required: Valuers must stay updated with evolving tax regulations to avoid procedural lapses.

Advisory to Council (CEV) Members

The Council of Engineers & Valuers urges all its members engaged in valuation practice to immediately review their compliance status under the new Income Tax provisions. It is advisable to consult updated guidelines, seek expert assistance if required, and ensure that applications are filed correctly and within time.

This development underscores the increasing regulatory scrutiny and the need for professional diligence in maintaining valid credentials in the valuation domain.

For further updates and expert guidance, members are encouraged to stay connected with professional forums and regulatory advisories issued from time to time.