1998–2003 Auction Research
Historical auction records are researched for the specific artist, school, period and quality level. Sources may include Christie’s, Sotheby’s, Pundole’s and other documented auction archives where relevant.
2001
SECTION 55(2)(b) • RETROSPECTIVE PAINTING VALUATION
The Retrospective Valuation — Section 55(2)(b) and the 2001 Market
For a painting acquired before 1 April 2001, Section 55(2)(b) permits the Fair Market Value as on 1 April 2001 to be considered as the cost of acquisition for capital gain computation, subject to the applicable tax provisions.
Establishing that historical value requires more than applying today's market price. A Government Approved Painting Valuer reconstructs the 2001 painting market using historical auction evidence, artist-specific comparables, quality, condition, provenance and period analysis.
HISTORICAL FMV
01 APR
2001 SECTION 55(2)(b)
RETROSPECTIVE BASIS
2001 SECTION 55(2)(b)
RETROSPECTIVE BASIS
HISTORICAL MARKET RECONSTRUCTION
How the 1 April 2001 FMV Is Established
The valuation focuses on evidence that existed around the relevant historical period rather than simply applying current auction prices retrospectively.
Artist & Comparable Selection
The strongest available comparables are identified based on artist attribution, subject, medium, dimensions, period, quality, condition and provenance.
Historical Adjustment Analysis
Differences between the subject painting and historical comparables are considered for quality, condition, provenance, size and market timing.
1 April 2001 Value Determination
The available evidence is analysed to establish a defensible FMV range and the valuer's professional judgment is applied to determine the retrospective FMV.
WHY HISTORICAL VALUATION REQUIRES SPECIALIST RESEARCH
Today's Auction Price Is Not the 2001 FMV
Indian art markets have changed substantially since 2001. Auction infrastructure, international collector participation, institutional buying and artist recognition have all evolved.
A retrospective valuation therefore needs to establish what the painting could reasonably have fetched in the open market on 1 April 2001, using historical evidence appropriate to that period.
MARKET
Historical Auction Evidence
Comparable auction results from the relevant historical period.
ARTIST
Attribution & Quality
Artist, school, period, medium and quality influence the comparable selection.
CONDITION
Physical State
Conservation condition and material differences can affect the historical value.
PROVENANCE
Ownership History
Documented provenance can materially influence the marketability and value of a work.
PRE-2001 PAINTING ACQUISITION?
Establish the 1 April 2001 FMV Before Computing Capital Gains
Share the painting details, acquisition information, available provenance and sale requirement. A2Z Valuers can assess the appropriate Section 55(2)(b) retrospective valuation methodology and documentation requirements.