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INCOME TAX DEPARTMENT INITIATES MANDATORY PERFORMANCE REVIEW FOR PROPERTY VALUERS

INCOME TAX DEPARTMENT INITIATES MANDATORY PERFORMANCE REVIEW FOR PROPERTY VALUERS

Er. P. V. Rajesh (Bureau Chief)

Hyderabad (Techno Journalist) 10/12/2024 – In a crucial step aimed at reinforcing accountability and professionalism, the Income Tax Department has served notices to registered valuers of immovable properties in Telangana. This move, under Section 34AB of the Wealth Tax Act, 1957, signals the start of a mandatory performance review, as outlined in Section 34AD(3) of the same Act. This nationwide initiative is intended to ensure that valuers adhere to high standards of transparency and integrity in their valuation practices.

Periodic Review Mandated for Valuers

The notices highlight the requirement for periodic performance evaluations, which must be conducted every three years. These evaluations will assess the qualifications and performance of valuers registered with the Income Tax Department, ensuring they comply with the rigorous standards set under the Wealth Tax Act. Valuers are required to submit detailed documents and information within the specified deadlines. Failure to comply will result in the presumption of no objection to the removal of the valuer’s name from the official Register of Valuers.

Serious Implications for Non-Compliance

This review process is not merely a formality, as failure to meet the standards could lead to severe consequences. Valuers who fail to comply or whose performance is deemed unsatisfactory risk being delisted from the Register, effectively preventing them from practicing as registered valuers. This reinforces the Income Tax Department’s commitment to enhancing the credibility and professionalism of the property valuation sector.

Legal experts have noted that this initiative reflects the government’s growing focus on ensuring transparency and accountability in property valuation, particularly amidst rising concerns over property dealings. The review process is viewed as a means to eliminate substandard practices and build public trust in property valuations.

The Significance of Compliance

Valuers are urged to comply with the notices without delay, as non-compliance could result in reputational damage and professional setbacks. The Income Tax Department has made it clear that the review is not punitive but aims to improve the overall quality of valuation services. Valuers who submit the necessary documents and meet the required standards will maintain their registration and continue their professional practices without interruption.

Government’s Push for Regulatory Strengthening

This move aligns with the government’s broader efforts to enhance regulatory frameworks across professions. By holding valuers accountable, the authorities aim to create a more reliable, transparent, and trustworthy property valuation system. The periodic nature of the review process means that valuers will need to undergo regular assessments to maintain their registration, with the initiative expected to expand to other states soon as part of ongoing regulatory reforms.

Valuers Urged to Act Promptly

Registered valuers in Telangana are strongly encouraged to act quickly in response to the Income Tax Department’s notices. Timely submission of the required documentation will not only help them retain their registration but also showcase their commitment to maintaining the highest standards of professionalism. As the government continues its oversight efforts, valuers should view this as an opportunity to demonstrate their competence and uphold the integrity of the valuation profession, crucial for sustaining public trust in the real estate sector.

For detailed information on the required documents and submission process, valuers are advised to consult the official notices or contact the relevant authorities for clarification.

This initiative has raised awareness about the need for regular scrutiny in the property valuation sector, marking a significant step towards a more regulated and transparent industry in India.