Rule 248 - Fee and valuation report under section 514
Reviewed by CA Nikhil Gupta · Last reviewed 10 October 2026
Local extract available Legacy mapping: New
Primary authority: Notification No. 22/2026 / G.S.R. 198(E)
Currentness control: Base Rules effective 1 April 2026. Check later amendments, corrigenda and portal implementation before action.
Rule text held in the production corpus
Local extract SHA-256: 3f5fde1cc0348e55303087a9261e87e58b30dbc9517cf5859c66c6a41fc08cee. This hash authenticates the local extract only; it does not certify that every amendment, table or Gazette footnote has been consolidated.
What Rule 248 says, in plain words
Rule 248 caps what a registered valuer can charge for valuing an asset and fixes the form of the valuation report under section 514(3).
| Part of the value | Maximum fee |
|---|---|
| First ₹5,00,000 | 0.5% |
| Next ₹10,00,000 | 0.2% |
| Next ₹40,00,000 | 0.1% |
| Balance above ₹55,00,000 | 0.05% |
- Several assets, one valuer (sub-rule 2). All assets valued by the same valuer for the same assessee are treated as a single asset when the fee is calculated, so the slabs are applied once to the combined value.
- Floor (sub-rule 3). If the calculated fee comes to less than ₹5,000, the valuer may charge a flat ₹5,000.
- Report (sub-rule 4). The valuation report under section 514(3) is in Form No. 170.
Fee calculation examples
| Asset value | Working | Fee cap |
|---|---|---|
| ₹5,00,000 | 0.5% of ₹5,00,000 = ₹2,500 | ₹2,500 calculated; the ₹5,000 floor lets the valuer charge ₹5,000 |
| ₹10,00,000 | 0.5% of first ₹5,00,000 = ₹2,500; 0.2% of the next ₹5,00,000 = ₹1,000; total ₹3,500 | ₹3,500 calculated; flat ₹5,000 may be charged |
| ₹1,00,00,000 | ₹2,500 + 0.2% of ₹10,00,000 (₹2,000) + 0.1% of ₹40,00,000 (₹4,000) + 0.05% of the balance ₹45,00,000 (₹2,250) | ₹10,750 |
| Two assets worth ₹6,00,000 and ₹4,00,000 valued by one valuer | Treated as one asset of ₹10,00,000 (sub-rule 2) | Same as the ₹10,00,000 row: ₹3,500 calculated, ₹5,000 floor |
These are maximum fees. The rule sets a ceiling, not a price, and does not by itself say who bears the fee or whether tax is added; read the engagement terms and the other rules of the Chapter alongside it.
Questions on Rule 248
What is the maximum fee a registered valuer can charge under Rule 248?
It is calculated in slabs: 0.5% on the first ₹5,00,000 of value, 0.2% on the next ₹10,00,000, 0.1% on the next ₹40,00,000 and 0.05% on the balance.
What if the calculated fee is very small?
Under sub-rule (3), where the calculated fee is less than ₹5,000 the valuer may charge a flat ₹5,000.
If I need several assets valued, is the fee calculated asset by asset?
No, not where the same valuer values them. Sub-rule (2) treats all such assets as a single asset for the fee calculation.
Which form is the valuation report in?
Form No. 170, for the report under section 514(3).
What is the fee for an asset worth ₹1 crore?
The cap works out to ₹10,750: ₹2,500 + ₹2,000 + ₹4,000 + ₹2,250 across the four slabs.
Official sources and related pages
- Notification No. 22/2026 / G.S.R. 198(E) - Income-tax Department — the notified Income-tax Rules, 2026
- Income-tax Act, 2025 - Income-tax Department — the sections the rule is made under
- Rule 247 — previous rule
- Rule 249 — next rule
- Income-tax Rules, 2026 - index
- Income-tax Act, 2025 - section index
Rule map
Related sections
Use the title and official text to identify the governing section; no local section reference is asserted.
Related Forms
Finin2min implementation framework
Trigger and scope
Determine whether the facts fall within the Rule heading and linked section. Verify commencement and the tax year involved.
Evidence and control
Preserve the return, statement, report, certificate, computation, source records and acknowledgement relevant to this Rule.
Consequence
Non-compliance may affect computation, exemption, deduction, procedural validity, reporting, recovery, appeal or penalty depending on the governing section.
Transaction application
Identify the actor, event date, governing tax year or reporting period, authority, document version and every cumulative condition. Record why each limb is satisfied, disputed or not applicable.
Authority, consent and execution
Confirm legal capacity, authorised signatory, digital-signature requirements, professional certification and portal credentials before filing or relying on the document.
Evidence and retention checklist
Retain source data, approvals, computations, correspondence, filing acknowledgement, payment record, amended filing history and the version of the governing instrument used.
Limitation, forum and remedies
Do not assume a general limitation period. Check the specific Act, Rule, notification, portal window, condonation power, appeal route and judicial treatment applicable to the event date.
Cross-law overlays
Check the Income-tax Act, 2025, transition rules, relevant Schedule, tax treaty, Companies Act, GST, FEMA and accounting treatment where the transaction crosses regimes.
Finin2min Q&A
Is this page the notified Rule?
It contains a local statutory extract, but the linked official source and later amendments control.
What should be verified immediately before use?
Effective date, amendment history, forms or utilities, filing channel, authentication method, due date, fees, transition from the 1962 Rules and any judicial interpretation.
Source and review trail
Use the current official instrument, portal or regulator publication before acting. Page-specific references are listed below.
- Official starting point
- www.incometaxindia.gov.in