CLIENT PROFILES

Client Profiles — Five Property Valuation Engagements

Five real-world style valuation scenarios showing how Government Approved Property Valuation can support property owners, tax professionals, lenders, NRIs and estate representatives across different property situations.

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Section 34AB Categories I & II IBBI L&B PAN India
FIVE ENGAGEMENTS

Different Property Situations. Different Valuation Requirements.

The following profiles demonstrate how valuation requirements can differ depending on the transaction, property history, statutory context and purpose for which the certificate is required.

01 DELHI
PROFILE 1 — SELLING A PRE-2001 PROPERTY

The Delhi Flat Owner Selling a Pre-2001 Property

A Delhi homeowner is selling a 1,200 sq ft flat in Vasant Kunj, purchased in 1986 for ₹6.8 lakh. The 2025 sale price is ₹2.1 crore and the applicable circle rate is ₹2.05 crore.

Because the sale price is above the stated circle rate, there is no Section 50C issue on these figures. However, the CA requires a Section 55(2)(b) certificate to establish the property's relevant 1 April 2001 FMV.

PROPERTY 1,200 sq ft Flat Vasant Kunj, Delhi
ORIGINAL COST ₹6.8 Lakh Purchased in 1986
SALE PRICE ₹2.10 Crore 2025 transaction
CIRCLE RATE ₹2.05 Crore Below sale price

A2Z Valuers — Retrospective Valuation

Comparable Vasant Kunj transactions from 2000–2002 Sub-Registrar records indicated ₹1,850–₹2,100 per sq ft on the stated carpet-area basis.

1 April 2001 FMV ₹22.5 Lakh ₹1,875 × 1,200 sq ft
FINANCE ACT 2024 Method A vs Method B
Method A Indexed Cost

₹22.5L × 363/100 = ₹81.7L indexed cost

Gain: ₹210L − ₹81.7L = ₹128.3L

Tax @ 20% = ₹25.7L

Method B 12.5% Route

Gain: ₹210L − ₹6.8L = ₹203.2L

Tax @ 12.5% = ₹25.4L

Engagement takeaway

In this specific case, Method B is marginally lower. Without the certificate, Method A would use the original ₹6.8 lakh cost, producing an indexed cost of approximately ₹24.7 lakh and tax of approximately ₹37.1 lakh. The certificate allows the CA to compare the applicable methods using documented 2001 FMV.

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02 MUMBAI
PROFILE 2 — PROPERTY GIFT

The Mumbai Apartment Owner Who Received a Property Gift

A Mumbai professional receives a 3-BHK apartment in Powai as a gift from a family friend who is not a relative under the Income Tax Act. The stated SDV is ₹1.15 crore, while available market evidence indicates a lower value.

LOCATION Powai, Mumbai 3-BHK apartment
CARPET AREA 1,050 sq ft Subject apartment
SDV ₹1.15 Crore Stated circle / SDV
VALUED FMV ₹95.8 Lakh A2Z valuation

Rule 11U FMV Certificate

Comparable registered transactions in the same complex during 2024–2025 indicated ₹13,500–₹14,200 per sq ft. After considering the subject property's floor and condition, the adopted FMV was ₹95.8 lakh.

Difference Between SDV & FMV ₹19.2 Lakh Illustrative tax impact stated in the engagement example: approximately ₹6 lakh at a 30% marginal rate.

The engagement demonstrates the importance of establishing the applicable Rule 11U FMV rather than simply assuming that the higher SDV represents the property's actual fair market value for the relevant tax purpose.

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03 GURUGRAM
PROFILE 3 — BANK & SARFAESI

The Gurugram Commercial Property SARFAESI Renewal

A Gurugram office building owner has a ₹5.5 crore LAP against a 5,000 sq ft commercial floor in Sector 44, Golf Course Road. The bank requires a biennial SARFAESI renewal certificate.

INCOME APPROACH ₹4.50 Crore

Current achievable Grade B commercial rent: ₹75/sq ft/month, with 10% vacancy. NOI is ₹40.5 lakh per year and the stated capitalisation rate is 9%.

CMA CROSS-CHECK ₹4.40 Crore

Comparable registered Sector 44 commercial transactions from 2023–2024 were ₹8,500–₹9,200 per sq ft. At ₹8,800 per sq ft, the subject indicates approximately ₹4.4 crore.

ADOPTED FMV ₹4.45 Crore
DSV ₹3.12 Crore 70% of stated MV
Engagement takeaway

Against the stated ₹5.5 crore LAP, the DSV of ₹3.12 crore indicates a substantial collateral difference under the engagement assumptions, prompting the bank to initiate a top-up security discussion.

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04 BENGALURU
PROFILE 4 — NRI PROPERTY SALE

The NRI Selling an Inherited Bengaluru House

An NRI in Canada inherited a 2,400 sq ft independent house in Koramangala, Bengaluru from her mother in 2020. The mother had acquired the property in 1992 for ₹18 lakh. The NRI sells the property in 2025 for ₹3.8 crore.

1 April 2001 FMV ₹31 Lakh
Plot FMV: ₹22L + Building DRC: ₹9L
METHOD A ₹112.5L

Indexed cost: ₹31L × 363/100

LTCG: ₹267.5L

Tax @ 20%: ₹53.5L

METHOD B ₹43.6L Tax

Gain: ₹380L − ₹31L = ₹349L

Tax @ 12.5%: ₹43.6L

01 Section 55(2)(b) Certificate
02 Section 195 TDS Consideration
03 Section 197 Lower Deduction
04 FEMA Repatriation Documentation

Under the stated example, Method B produces the lower capital-gains tax. The Indian buyer's stated TDS obligation is ₹43.6 lakh, with a Section 197 certificate confirming the effective TDS amount. Net sale proceeds are then repatriated through the NRO account subject to the applicable banking, tax and FEMA documentation.

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05 MULTI-CITY
PROFILE 5 — ESTATE VALUATION

The Estate With Multi-City Property

An estate executor is distributing properties across Delhi, Mumbai and Bengaluru. A coordinated engagement is required to establish the relevant estate values and supporting retrospective valuation records.

PROPERTY DATE-OF-DEATH FMV 1 APRIL 2001 FMV
Delhi Flat South Extension · 900 sq ft ₹1.80 Crore ₹28 Lakh
Mumbai Flat Bandra · 1,100 sq ft carpet ₹3.20 Crore ₹48 Lakh
Bengaluru Plot Indiranagar · 3,000 sq ft ₹4.80 Crore ₹95 Lakh
TOTAL ESTATE PROPERTY FMV ₹9.80 Crore

Coordinated Estate Documentation

The engagement provides each heir with a Section 49 cost basis certificate reflecting the applicable FMV at the date of death, together with a Section 55(2)(b) retrospective certificate for future capital-gain computation where applicable.

The three-city assignment demonstrates how multiple properties can be coordinated through a single professional engagement while retaining property-specific comparable evidence for each location.

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YOUR PROPERTY MAY HAVE A DIFFERENT STORY

Need a Valuation for Your Property Situation?

Whether your requirement involves a property sale, purchase, gift, inheritance, bank finance, SARFAESI, NRI transaction or estate distribution, start with the facts of your property and the purpose of valuation.

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