The Section 48 deduction for cost of improvement — the capital expenditure on additions or alterations to the property after acquisition — is a critical component of the capital gain computation, and it requires the valuer to assess:
The structural improvements made to the property, their extent and the quality of the work undertaken.
The cost of those improvements at the time they were made, rather than their current replacement prices.
How the improvements affect the property’s current FMV relative to comparable properties in the Section 50C analysis.
A Civil Engineer valuer can assess the cost of improvement from first principles — the structural work done, the materials used and the labour costs in the relevant year — producing a defensible cost of improvement figure even where the original contractor invoices are incomplete or unavailable.
The practice covers the asset categories relevant to capital gain valuation, including property, agricultural land, unlisted equity, jewellery and works of art.
Residential, commercial and industrial real estate — the most frequent capital gain valuation context, other than agricultural land and forest.
Agricultural land valuation, including the Section 54B agricultural land capital gain exemption context.
Stocks, shares, debentures, securities, shares in partnership firms and business as a going concern, including unlisted equity for Section 50CA and Rule 11UAE.
Gold jewellery, diamond jewellery and precious stones, including Rule 11UA capital gain valuations.
Paintings, sculptures and works of art, including Rule 11UA(1)(a) capital gain valuations.
This appointment represents a significant institutional credential for the practice of capital gain valuation: the Department’s own enforcement valuer produces certificates the Department itself relies on, which are the same certificates the Department accepts in assessment proceedings.