Fair Market Value (FMV) is the price at which an asset would sell in an open market when both buyer and seller are informed, willing, and not under pressure.
FMV represents the true value of an asset based on current market conditions. It assumes a fair transaction where both parties have complete knowledge and no compulsion to buy or sell.
FMV is commonly used in real estate, taxation, investments, and business valuation. In India, FMV is often considered in tax calculations under rules by the Income Tax Department India.
"If a property is sold at ₹50 lakh in a fair deal between buyer and seller, ₹50 lakh is considered its Fair Market Value."