Frequently Asked Questions
Fair Market Value is the price a property or asset would fetch in an open market between a willing buyer and seller, with both having reasonable knowledge of relevant facts and no compulsion to buy or sell.
FMV valuation is commonly required for:
Capital Gains Tax calculations (especially for assets acquired before 01.04.2001)
Gift or inheritance reporting
Visa/immigration asset declarations
Mergers, acquisitions, or share transfers
FEMA, SEBI, and Income Tax compliance
Only a Government Approved Valuer like Dr. S. N. Bansal can issue FMV certificates that are accepted by:
Income Tax Department
RBI (for FEMA compliance)
Courts and embassies
Chartered Accountants and auditors
Immovable property (land, buildings, flats)
Plant & machinery
Shares and securities (unlisted)
Gold, jewellery, antiques
Paintings and other capital assets
Market Value is the estimated price at which an asset can be sold today.
Fair Market Value considers legal/tax rules, historical prices, and specific dates (e.g. FMV as of 01.04.2001 or date of transfer).
FMV is used to calculate:
Capital gains tax
Gift tax liability under Section 56(2)
Wealth tax (where applicable)
Share valuation under Rule 11UA (for startups, ESOPs, etc.)
Depending on the asset type, common methods include:
Comparable Sales Method
Cost Approach (replacement/depreciation)
Discounted Cash Flow (DCF) for shares and businesses
Guideline Value Comparison (for property)
Yes. For high-value gifts (especially property, jewellery, or shares), FMV valuation helps determine taxability and compliance under the Income Tax Act.
Absolutely. FMV reports are often used in partition suits, inheritance disputes, divorce settlements, and during arbitration or litigation.
Typically, the process takes 1–3 working days, depending on the asset type, complexity, and documentation provided.