CBDT Extends Registration Deadline for Valuers and Tax Practitioners Under New Act to 31 March 2027

The Central Board of Direct Taxes has given registered valuers and authorised income-tax practitioners a further six months to put their paperwork in order. Through Notification No. 120/2026 (G.S.R. 822(E), F.No. 370142/30/2026-TPL) dated 17 September 2026, the CBDT has pushed the transition deadline under the new Income-tax Act 2025 from 30 September 2026 to 31 March 2027, and at the same time replaced two of the registration forms that these professionals must file.

The change matters because the Income-tax Act 2025, which takes effect from 1 April 2026, re-codifies the old registration machinery for valuers and practitioners into fresh sections, and the Income-tax Rules 2026 built the renewal and transition timetable around a 30 September 2026 cut-off that many existing registrants were struggling to meet. This explainer sets out exactly what the notification does, works through the cost and timeline for a professional transitioning an old registration, flags the mistakes that surface when these applications are scrutinised, and answers the questions readers send us most.

What the Section Says

Notification No. 120/2026 is issued under section 533 of the Income-tax Act 2025 (the rule-making power) read with sections 262, 273, 413, 514 and 515 of the same Act. Two of those sections carry the substantive authority this notification depends on: section 514 governs registration as a valuer, and section 515 governs registration as an authorised income-tax practitioner. The notification itself does not create new obligations; it amends the Income-tax Rules 2026 and substitutes two forms.

The operative amendment is to rule 246(4) and rule 256(4) of the Income-tax Rules 2026. Both sub-rules previously fixed 30 September 2026 as the last date for an existing registration to be renewed or transitioned into the new regime. Notification No. 120/2026 substitutes 31 March 2027 in place of that date in each sub-rule, so a valuer or practitioner who was already on the register under the earlier framework now has until the close of the 2026-27 financial year to complete the migration.

The notification also substitutes a revised Form No. 169, which is the application for registration as a valuer under section 514. The revised form carries a fee of Rs 10,000, but that fee is expressly waived for an applicant who is already registered as a valuer under the Wealth-tax Act 1957 and is simply carrying that registration forward. In other words, an existing valuer migrating a live registration pays nothing on Form No. 169, while a first-time applicant for the same category pays Rs 10,000.

Alongside it, the notification substitutes a revised Form No. 171, the application for registration as an authorised income-tax practitioner under section 515. This is the successor to the "authorised income tax practitioner" category long recognised under section 288 of the Income-tax Act 1961. Notification No. 120/2026 does not prescribe a separate fee on Form No. 171, so professionals filing only in the practitioner stream should budget for the form itself rather than a statutory application charge.

The two registration streams sit in different sections and carry different cost consequences, so it helps to read them side by side before deciding which form applies. A professional who both values assets and represents taxpayers may need to file in both streams, and the deadline of 31 March 2027 applies equally to each. The role of a registered valuer is central to how a capital asset is priced for tax, which is why the valuer register is governed this tightly.

Worked Example

Consider Mr Rao, a chartered engineer who has held a registration as a valuer of immovable property under section 34AB of the Wealth-tax Act 1957 since 2015. Under rule 246(4) as it stood before 17 September 2026, he had to transition that registration into the new section 514 framework by 30 September 2026 or risk falling off the register. Notification No. 120/2026 now gives him until 31 March 2027 to file the revised Form No. 169, a full six-month extension on the original date.

Because Mr Rao is already a registered valuer under the Wealth-tax Act 1957, the Rs 10,000 fee on the revised Form No. 169 is waived in his case. His only out-of-pocket cost is the time to compile his existing registration particulars and file the form before 31 March 2027. Contrast that with Ms Iyer, a newly qualified valuer applying for the first time in the same category: she must pay the full Rs 10,000 fee on Form No. 169, because the waiver is tied specifically to an existing Wealth-tax Act 1957 registration, not to the valuation stream as such.

Now take Mr Rao's colleague, Mr Khan, who practises purely as a tax representative and wants to be listed as an authorised income-tax practitioner. He files the revised Form No. 171 under section 515, and because the notification prescribes no separate fee on that form, his statutory application cost is nil. If Mr Rao himself also represents clients before the tax authorities, he would file both Form No. 169 and Form No. 171, with the single Rs 10,000 fee (waived in his case) attaching only to the valuer application. All three professionals share the same 31 March 2027 deadline.

The practical value of the six-month extension is straightforward to quantify for a busy practice. A valuer who would otherwise have rushed a filing before 30 September 2026 now has 182 additional days, to 31 March 2027, to assemble supporting documents without interrupting live valuation assignments. For anyone modelling the tax impact of the valuations they sign off, our capital gains calculator shows how a valuer's figure flows through to the final liability, and the broader income tax calculator ties that into total tax for the year.

Common Mistakes

The first error we see is treating the 31 March 2027 date as a fresh registration window rather than a transition deadline. Rule 246(4) and rule 256(4) govern the carry-forward of existing registrations; a professional who has never been registered cannot rely on the extension to delay a first application indefinitely, and a first-time valuer still owes the Rs 10,000 fee on Form No. 169 regardless of the 31 March 2027 date.

A second, costly mistake is assuming the fee waiver on Form No. 169 applies to every applicant. The waiver in Notification No. 120/2026 is expressly limited to those already registered as valuers under the Wealth-tax Act 1957. An applicant who held some other credential but was never on the Wealth-tax Act register must pay the full Rs 10,000, and filing without the fee on the mistaken belief that it is waived is a common reason these applications are returned.

A third pitfall is confusing the two sections and their forms. Section 514 and Form No. 169 are the valuer stream; section 515 and Form No. 171 are the practitioner stream. Filing Form No. 171 when you meant to transition a valuer registration, or vice versa, does not meet the rule 246(4) or rule 256(4) requirement for your actual category, and the 31 March 2027 clock keeps running while the wrong form sits in the system.

Fourth, some professionals overlook that the notification is dated 17 September 2026 but the old 30 September 2026 deadline was still live when it was issued, meaning there was no gap in coverage. Anyone who had already filed before 17 September 2026 under the earlier form does not need to re-file on the revised Form No. 169 or Form No. 171 merely because the form was substituted; the substitution governs applications made after the notification, and a valid earlier filing stands. When in doubt, deciding between the old and new tax frameworks for your own return is a separate exercise, and our old vs new regime calculator keeps that question distinct from your registration status.

FAQ

What is the new deadline set by Notification No. 120/2026?

The deadline in rule 246(4) and rule 256(4) of the Income-tax Rules 2026 has moved from 30 September 2026 to 31 March 2027. Valuers (Form No. 169, section 514) and authorised income-tax practitioners (Form No. 171, section 515) both have until 31 March 2027 to transition an existing registration.

Do I have to pay Rs 10,000 to register as a valuer?

A first-time applicant pays the Rs 10,000 fee prescribed on the revised Form No. 169 under section 514. If you are already registered as a valuer under the Wealth-tax Act 1957 and are carrying that registration forward, Notification No. 120/2026 waives the Rs 10,000 fee for you.

Is there a fee on Form No. 171 for practitioners?

Notification No. 120/2026 does not prescribe a separate application fee on the revised Form No. 171 for registration as an authorised income-tax practitioner under section 515. Budget for the filing itself rather than a statutory application charge, and confirm the current position on incometax.gov.in before you submit.

Which sections of the Income-tax Act 2025 authorise this notification?

The notification is issued under section 533 (the rule-making power) read with sections 262, 273, 413, 514 and 515 of the Income-tax Act 2025. Section 514 governs valuer registration and section 515 governs authorised income-tax practitioner registration. The Act itself took effect from 1 April 2026.

I filed before 17 September 2026 under the old form. Do I re-file?

No. The substitution of Form No. 169 and Form No. 171 by Notification No. 120/2026 dated 17 September 2026 governs applications made after that date. A valid filing made before 17 September 2026 under the earlier form stands, and you need not re-submit merely because the form was revised.

Does this notification change how valuations affect my capital gains tax?

No. Notification No. 120/2026 is purely about who may register as a valuer or practitioner and by when (31 March 2027); it does not alter valuation standards or tax rates. How a registered valuer's figure feeds into your liability is a separate question, and a working valuation still drives the capital gains computation.

Where can I read the primary source?

The notification is published as G.S.R. 822(E) on the Income Tax Department portal at incometax.gov.in, and the enabling Income-tax Act 2025 and Wealth-tax Act 1957 are available on indiacode.nic.in. Always verify the Rs 10,000 fee, the 31 March 2027 deadline and the Form No. 169 and Form No. 171 particulars against those primary sources before acting.