Rules 246 and 248 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 246 sets out how a person applies to be a registered valuer under section 514 of the Income-tax Act, 2025, and what happens to valuers who were already registered under the Wealth-tax Act, 1957. Rule 248 caps the fee a registered valuer may charge and prescribes the valuation report. The date for existing valuers to update their details in rule 246(4) is now the 31st March, 2027.
This article is written as per the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026. Later notifications should be checked before you act.
An application for registration is made in Form 169, verified as the Form says, with a non-refundable fee of Rs. 10000 (rule 246(1)). A person holding a valid Wealth-tax Act registration on 31 March 2026 stays a registered valuer under section 514 but must update details by filing the application by 31 March 2027, with no fee (rule 246(4) and (5), as amended by G.S.R. 822(E), 17 September 2026). Rule 248 caps the valuer's fee on a sliding scale, with Rs. 5000 as the floor the valuer may charge, and the valuation report is in Form 170.
Valuers who want a quick check of their own position can use our legal consultation page before the update date comes close.
What changed after March 2026
Notification 120/2026, the Income-tax (Fourth Amendment) Rules, 2026 (G.S.R. 822(E), 17 September 2026), is made under section 533 read with sections 262, 273, 413, 514 and 515 of the Act. Its rule 5 amends rule 246(4), and its rule 7 substitutes Form 169. Rules 5 to 8 of the notification came into force on the date of their publication in the Official Gazette.
| Provision | As notified in March 2026 | After the amendment |
|---|---|---|
| Rule 246(4), date to update details | "30th September, 2026" | "31st March, 2027" |
| Form 169 | Form as printed with the Rules | Substituted by rule 7 of the notification |
Nothing else in rules 246 or 248 is touched by that notification. If you are planning an update application, read the substituted Form 169 in the notification itself.
Rule 246: registration as a valuer, sub-rule by sub-rule
Rule 246 is headed "Application for registration as valuer under section 514". It has seven sub-rules:
| Sub-rule | What it says |
|---|---|
| (1) | An application under section 514(2) is made in Form 169, verified in the manner specified in it, and accompanied by a non-refundable fee of Rs. 10000 |
| (2) | An application pending before the authorities mentioned in section 514(2) immediately before 1 April 2026 is treated as filed under sub-rule (1); no further fee is required |
| (3) | Where a person becomes ineligible because of the qualifications in rule 247, the fee already paid is refunded on an application to the authorities mentioned in section 514(2) |
| (4) | A person already registered as a valuer under the Wealth-tax Act, 1957 (27 of 1957) with a valid certificate on 31 March 2026 continues as a registered valuer under section 514, but must update details by filing the application in sub-rule (1) by 31 March 2027; registration is then granted if the application is complete in all respects |
| (5) | For sub-rule (4), the application may be made without a fee |
| (6) | A person registered under section 514 must qualify in an examination within a period the Central Government specifies by notification |
| (7) | If the person fails to qualify within that period, the registration stands cancelled from the end of the period |
The rule does not say what the examination is or when the period ends; it leaves both to the Central Government's notification, and none is in the text consulted for this article. For the Wealth-tax Act, 1957, check that law as it stands.
If you handle valuation work and are unsure whether your registration carries over, our tax planning advisory team can help you read the rule against your certificate, and our guide to rule 247 on valuer qualifications covers the eligibility question that links to sub-rule (3).
Rule 248: the valuer's fee and the report
Rule 248 is headed "Charging of fee and submission of valuation report under section 514". Sub-rule (1), subject to sub-rules (2) and (3), says the fee a registered valuer charges for valuing an asset shall not exceed the amount worked out at these rates:
| Slice of the asset as valued | Maximum fee |
|---|---|
| On the first Rs. 500000 | 1/2 % of the value |
| On the next ten lakh rupees | 1/5 % of the value |
| On the next forty lakh rupees | 1/10 % of the value |
| On the balance | 1/20 % of the value |
The other sub-rules add three points. If two or more assets are to be valued at the instance of an assessee, they are deemed a single asset for working out the fee (sub-rule (2)). Where the amount worked out is less than Rs. 5000, the valuer may charge Rs. 5000 (sub-rule (3)). The report of valuation under section 514(3) is in Form 170 (sub-rule (4)).
An example
Kiran Traders asks Asha, a registered valuer, to value its machinery and a godown together, and the total comes to Rs. 3000000. The two assets are one asset for the fee (sub-rule (2)). The ceiling is worked out slice by slice:
- first Rs. 500000 at 1/2 %: Rs. 2500;
- next ten lakh rupees at 1/5 %: Rs. 2000;
- the remaining Rs. 1500000 falls in the next forty lakh rupees at 1/10 %: Rs. 1500.
The ceiling is Rs. 6000. Because that is not less than Rs. 5000, the Rs. 5000 minimum in sub-rule (3) does not come into play. Asha reports the valuation in Form 170.
The section of the Act behind both rules
Both rules are made under section 514 of the Income-tax Act, 2025, the section on registered valuers. Our article on sections 512 to 514, publication of information and registered valuers explains what the section covers. Removal of a valuer from the register is dealt with in rule 249.
Need help with valuer registration?
If you are a valuer, or an assessee relying on one, we can help you check registration status, the update application and the report format. Reach us through our legal consultation page for a conversation about your specific case.
Key takeaways
- The date in rule 246(4) is now 31 March 2027, by G.S.R. 822(E) of 17 September 2026.
- The update application for existing valuers needs no fee (rule 246(5)).
- New applications go in Form 169 with a non-refundable fee of Rs. 10000.
- Rule 248 caps the fee on a four-slice scale and allows Rs. 5000 where the result is lower.
- The valuation report is in Form 170.
Read next
- Rule 247: qualification of a registered valuer
- Rule 249: removal from the register of valuers
- Sections 512 to 514 of the Act: registered valuers
- Rules 250 to 252: income-tax practitioner qualifications
- Rules 255, 256, 257 and 260: practitioner register and certificate
Disclaimer: Based on the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026, as consulted on 2 October 2026. It explains the words of the rules and forms only; later notifications, the forms and utilities on the e-filing portal, circulars and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.