SECTION 34AB • WORKS OF ART

Section 34AB — The Statutory Credential That Makes Every Certificate Authoritative

The Section 34AB, Works of Art Government Approved Valuer registration under the Income Tax Act, 1961 is the specific statutory credential for painting valuation certificates used in Indian income tax proceedings.

For prescribed statutory valuation requirements, the Fair Market Value certificate must be issued by a Government Approved Valuer registered under the applicable Section 34AB category. For paintings, this is 34AB Works of Art.

A certificate from another source, regardless of professional experience, may not satisfy the specific statutory requirement where a Section 34AB valuation is prescribed.

↗ STATUTORY VALUATION ENQUIRY Get Expert Advice ☎ DIRECT VALUATION ENQUIRY +91-9999992343

GOVERNMENT APPROVED 34AB

VIII

Works of Art

PAINTING VALUATION FAIR MARKET VALUE

GOVERNMENT APPROVED •

The credential behind a statutory painting valuation

Section 34AB provides the specialist statutory framework for valuation of works of art, including paintings and culturally significant assets.

34AB

Works of Art

Specialist statutory valuation framework for paintings, artworks and cultural assets.

FMV

VALUATION BASIS

Fair Market Value

Professional valuation evidence prepared for the applicable statutory valuation context.

INCOME TAX VALUATION

Rule 11UA(1)(a) — Fair Market Value for Paintings

Open Market Fair Market Value

Rule 11UA(1)(a) provides the mechanism for determining the FMV of a painting for relevant Income Tax Act purposes. The valuation considers the price that the painting would reasonably fetch if sold in the open market on the relevant date.

56(2)(x)

Gift of Painting

Where a painting is received from a non-relative and the prescribed threshold is exceeded, its Fair Market Value becomes relevant for taxation in the recipient’s hands.

50CA

Transfer Below FMV

Where applicable, the FMV of the painting becomes relevant where the consideration for transfer is below the prescribed valuation benchmark.

43CA

Painting Held as Inventory

For paintings held as business inventory, valuation may become relevant where an asset is transferred below the applicable Fair Market Value.

RETROSPECTIVE 2001 FMV CAPITAL GAINS • HISTORICAL VALUATION

Section 55(2)(b) — The Retrospective FMV for Capital Gain

For paintings acquired before 1 April 2001, Section 55(2)(b) permits the taxpayer to use the Fair Market Value as on 1 April 2001 as the cost of acquisition for capital gain computation, subject to the applicable law.

The Government Approved Painting Valuer’s retrospective FMV certificate is prepared through systematic historical research, including auction records from the relevant period for the specific artist, school, quality level and period.

HISTORICAL COMPARABLE FRAMEWORK

Artist School Quality Period Historical Comparables

Explore Capital Gain Valuation →

2001

HISTORICAL FMV 1 APRIL

The relevant historical valuation date for the Section 55(2)(b) framework.

MUSEUM & CULTURAL DONATIONS

Section 80G — Museum Donation Valuation Certificate

A painting donated to the NGMA, Lalit Kala Akademi or another eligible Section 80G institution may qualify for an income tax deduction based on the applicable Fair Market Value of the donated painting.

A contemporaneous valuation certificate from a Section 34AB Government Approved Valuer provides the professional valuation evidence for the applicable tax documentation.

Contemporaneous FMV

Valuation undertaken around the relevant donation date.

Painting Identification

Artist, title, medium, dimensions and other available identifying characteristics.

Certificate

Professional valuation documentation supporting the applicable statutory requirement.

132 SEARCH

INCOME TAX ENFORCEMENT VALUATION

Section 132 — Painting Valuation During IT Search

Paintings identified during Income Tax Department search proceedings may require professional valuation by the appointed Government Approved Art Valuer.

A2Z Valuers provides specialist painting and artwork valuation support for PAN India enforcement assignments, including valuation requirements arising from search and seizure proceedings under applicable statutory provisions.

SECTION 34AB CATEGORY VIII WORKS OF ART PAN INDIA

CAPITAL GAINS • FINANCE ACT 2024

Finance Act 2024 — LTCG Transitional Valuation for Paintings

The Finance Act 2024 introduced a revised LTCG framework for capital assets, with transitional provisions for qualifying assets acquired before 23 July 2024.

METHOD A 20%

With Indexation

The applicable indexed cost computation uses the relevant Cost Inflation Index (CII) framework where the transitional option applies.

1 April 2001 FMV Historical valuation input where applicable

METHOD B 12.5%

Without Indexation

The applicable computation uses the revised 12.5% LTCG rate without indexation under the transitional framework.

Actual Sale Consideration Relevant input for the applicable computation

Painting valuation matters to the historical cost calculation. Where the applicable transitional computation uses the 1 April 2001 FMV, the Section 55(2)(b) retrospective valuation provides the historical FMV input for the relevant calculation.

SECTION 34AB • • WORKS OF ART

Need a Statutory Painting Valuation?

Get Expert Advice from a Government Approved Painting Valuer for the applicable statutory valuation requirement.

Get Expert Advice → DIRECT ENQUIRY +91-9999992343