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Income-tax Act, 2025 | Section 91

Section 91 - Reference to Valuation Officer

The Assessing Officer may refer valuation to a Valuation Officer when the statutory conditions are met; valuation procedure and evidence then become central.

Reviewed by CA Nikhil Gupta · Updated 9 October 2026

Section 91: operativeEffective 1 April 2026Tax Year 2026-27 onwardReviewed 8 October 2026
Current-law control

Section 91 is presented using the consolidated Income-tax Act, 2025 as amended by the Finance Act, 2026. The general commencement date is 1 April 2026. Earlier years and saved proceedings may remain governed by the Income-tax Act, 1961 and the repeal/savings framework.

2-minute professional decode

The Assessing Officer may refer valuation to a Valuation Officer when the statutory conditions are met; valuation procedure and evidence then become central.

Professional checkpoint: Apply the provision only after checking the defined person, tax year, evidence, thresholds and any connected Rule or Schedule.

Who should test this section?

Section 91 matters to investors, property owners, promoters, companies, firms and advisers where the transaction involves reference to valuation officer; the charge, computation and relief steps should be separated.

Evidence to retain

The section 91 file should preserve acquisition and transfer instruments, valuation or stamp records, payment evidence, holding-period material and every document that supports the treatment of reference to valuation officer.

1961 Act bridge

Legacy provisionLegacy headingMapping
55AReference to Valuation OfficerRenumbered / mapped

The bridge is a research aid. Legacy case law carries over only after the current wording and transition rules are matched.

Rules and forms linked to this section

RuleOperational roleMapped form(s)
Rule 55Conditions for reference to Valuation Officers under section 91(1)(b)No standalone form mapped

Worked application

The Assessing Officer disputes the value adopted for a capital asset. Before a valuation reference is made, test the statutory trigger and the conditions in Rule 55, then preserve both the valuation material and the reference record.

Common mistake

For section 91, do not jump from sale proceeds to a capital-gain number: first identify the transfer/charging event, then consideration, cost, timing and any exemption or rollover condition relevant to reference to valuation officer.

Compliance approach

Identify the statutory trigger for section 91, lock the relevant tax year, reconcile the facts to the operative sub-section, preserve the evidence trail and separately test every linked Rule, Form, Schedule and exception before finalising the return position.

Numeric / timing checkpoints in the operative text

Related provisions

Current statutory text

91. (1) For ascertaining the fair market value of a capital asset for this Chapter, the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer,— (a) if the value of the asset claimed by the assessee is as per the estimate by a registered valuer, but the Assessing Officer is of the opinion that the value so claimed is at variance with its fair market value; (b) in any other case, if the Assessing Officer is of the opinion that— (i) the fair market value of the asset exceeds the value claimed by the assessee by more than the percentage of value of such asset or amount, as may be prescribed; or (ii) having regard to the nature of the asset and other relevant circum- stances, it is necessary so to do. (2) The provisions of section 269(3) to (8) shall, with necessary modifications, apply in relation to such reference made under sub-section (1).

Primary-source trail

Source status: full Section 91 statutory text in the local source corpus; reconciled to the current consolidated Act control on 8 October 2026.

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