Section 55A - Reference to Valuation Officer

Section 55A of the Income Tax Act 1961, prescribes provisions regarding reference to Valuation Officer. With a view to ascertain the FMV of a capital asset, the AO may refer the valuation of capital asset to the Valuation Officer in the following cases :

• Where as per Assessing Officer (AO), the value claimed by assessee after getting estimate of registered valuer, is at variance with the fair market value.

• In any other case, 

• If in the opinion of the AO, the FMV of the asset exceeds 15% of the value claimed by the assessee or Rs. 25,000/- whichever is lower.

• If in the opinion of AO, with regard to nature of asset and other circumstances, it is necessary to do so.