Ready recknor rate or valuation report by valuer

I sold inherited property, for that I have obtained valuation report from registered valuer. He quoted 2 rates one is Ready recknor rate and another is valuation report rate which is higher side than ready recknor rate ( stamp duty rate )

Now My CA has told me with effect from FY 2021. New ammendment in section 55 has brought new changes where it is quoted for getting 2001 valuation. Fair market value should not exceed stamp duty value 

I have personally checked it and found the same , in this case what needs to be done ? As RR rates around those years are at dirt cheap rates god now why .. shall I. Go with fair market rate or stick to RR 

Thanks in advance 

Replies (7)
Quick Summary
This discussion clarifies the use of valuation reports versus Ready Reckoner (RR) rates for inherited property sales, especially after the FY 2021 amendment to Section 55. The consensus is that your CA is correct; the fair market value used for calculating the cost of acquisition should not exceed the stamp duty value (RR rate). While using the higher valuation report rate might seem appealing, it could lead to penalties and interest. The thread also touches upon the possibility of revising returns if an error was made, with varying implications for penalties and interest depending on the assessment year.

*Valuation report For calculation of cost of acquisition.

Your CA is right & is well informed with amendment.

Don't react under the pressure of greed, otherwise you will be in trouble.

Apart from interest, how much of penalty i need to pay If i use Fair market rate ??

Originally posted by : Dhirajlal Rambhia
Your CA is right & is well informed with amendment.

Don't react under the pressure of greed, otherwise you will be in trouble.

Can I correct it by filing revised return ? Earlier I had used fair market rate . Can I revise it using RR rate under geniune omissions error ?

Yes, you can revise it  if for AY 2022-23, till 31.12.2022, there want be any penalty.

If earlier two AYs, you can update it, with some penalty & interest.

Originally posted by : Dhirajlal Rambhia
Yes, you can revise it  if for AY 2022-23, till 31.12.2022, there want be any penalty.

If earlier two AYs, you can update it, with some penalty & interest.

But interest under 234B and 234C will be applicable right ? 

Originally posted by : Dhirajlal Rambhia
Yes, you can revise it  if for AY 2022-23, till 31.12.2022, there want be any penalty.

If earlier two AYs, you can update it, with some penalty & interest.

Also are you sure there won't be any penalty. I read penalty upto 50-200 percent is applicable. Correct me if I am wrong 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details