Valuation

For iincome tax/ wealth tax purposes, generally it is the fair mrket value that is relevant. Fair market value is the price it would fetch if sold in the open market. It has to be estimated having regard to the market conditions, location, age of the building and a host of other factors. The Maharastra Government yearly reckoner rate may be relevant, but not binding.

The intended purpose of the proposed valuation is not stated.

Sir, Rajgopalan Ji,  the purpose is to put the value in our book of account after due depreciation. We do not want to work out market value, nor the evaluation is for corporate property tax.

Pl guide about the formula.

If it is a purely residential house, not let out, but used for the personal use of the owner, it is doubtful whether any dpreciation will be admissible for income tax purposes.

If the proposed valuation is purely for accounting purposes without any tax implication, you may get the property valued by a Valuer registered with the I.T Department ('Approved Valuer').