Before relying on a capital gain valuer’s report, a CA, tax advocate, or bank credit officer should verify the valuer’s credentials against this checklist. Every item should be verifiable through appropriate records or by direct request to the valuer. A properly registered capital gain valuer should be able to provide supporting documentation for the relevant credentials.
Ask for the valuer’s Section 34AB registration certificate. It should identify the registered valuer by name, the applicable asset class or classes, registration number and renewal date. Confirm that the registration is current and has not expired.
Confirm that the registration explicitly covers the asset class being valued. A capital gain valuer registered for land and building is not automatically registered for artworks, jewellery or other asset categories. The relevant category should appear within the registration documentation.
Confirm that the registration has been renewed as required under Rule 13 of the Income Tax Rules. The important point is to establish that the registration is current for the date and purpose of the valuation assignment.
Ask whether the valuer has received appointments from the Income Tax Department, GST Department or other government agencies for capital asset valuations. Such appointments can provide important evidence of experience in government valuation assignments.
Where the engagement involves a bank, confirm whether the valuer is included on the relevant bank’s empanelled-valuer list. This can be particularly relevant where the valuation intersects with collateral, lending or institutional asset requirements.
Ask the valuer to confirm in writing that they have no financial interest in the transaction and that no commercial relationship with any party exists that could compromise their professional independence.
Ask whether the valuer has been subject to any Section 34AB deregistration proceeding, conduct complaint, or court finding of negligence or misstatement. A transparent professional practice should be prepared to address relevant conduct-history questions.
Ask for a redacted sample of a capital gain valuation report prepared for a similar asset class and purpose. Relevant details should include the Section 55(2)(b) reference, basis of value, CBDT CII computation and registration details where applicable.
Do not evaluate a capital gain valuation report only by the figure stated on its final page. Verify who signed it, what asset class they are registered for, whether the registration is current, and whether the report has been prepared for the correct statutory purpose.
For a capital gain assignment, verify the registration, asset-class scope and professional credentials before relying on the valuation conclusion.