Incorrect statement regarding the method of valuation is:
1
Valuation based on profit is suitable for buildings like hotels, cinema, theatres etc.
2
Development method of valuation is used for the properties which are completely developed or constructed.
3
In direct comparison with capital value, the capitalized value of the property is fixed by direct comparison with capitalized value of similar property in the locality.
4
Rental method of valuation is applicable only when the rent is known or probable rent is determined by enquiries.