GCCI point to disparity in jantri rates, writes to state govt

Ahmedabad: The Gujarat Chamber of Commerce and Industry (GCCI) highlighted concerns regarding the disparity between base dates for jantri valuation under the Gujarat govt and fair market value (FMV) assessment under the Income Tax Act, 1961. This disparity created practical difficulties in property valuation, taxation, and compliance, impacting various stakeholders. GCCI raised these concerns in a correspondence to the superintendent of stamps and the inspector general of registration.
"The Gujarat govt notified April 1, 1999, as the base date for stamp duty (jantri) valuation. The Income Tax Act, 1961, under Section 55(2)(b), considers April 1, 2001, as the base date for determining the cost of acquisition for properties acquired before this date while computing capital gains. This discrepancy creates a practical challenge in obtaining property valuation for April 1, 2001, as the jantri rates available in Gujarat are based on April 1, 1999. Due to this misalignment, property owners, investors, and tax professionals face difficulty in determining the fair market value (FMV) required for taxation under the central law," stated GCCI direct tax committee chairman Jainik Vakil.
He added that due to the unavailability of standardised valuation rates as per the Income Tax Act's requirement, property owners may need to resort to expensive valuation reports, adding financial and procedural burdens.
GCCI senior vice president Rajesh Gandhi stated in the letter, "The govt may consider preparing an official notional valuation table for April 1, 2001, based on statistical analysis of jantri appreciation trends. This table can be used as a reference document to bring uniformity in valuation. There is a need to establish a state-wide uniform methodology for property valuation applicable under the Income Tax Act, 1961, to avoid inconsistencies and reduce disputes. Ensure the publication of historical jantri rates from April 1, 1999, onwards in an easily accessible online format to aid valuation professionals and taxpayers."