The Federal Board of Revenue (FBR) has announced an upward revision in the valuation of immovable properties in Islamabad for the determination of income tax on sale and purchase transactions.
The decision, communicated through SRO 117(I)/2019 issued on Friday, signifies a significant adjustment in the valuation table, aimed at optimizing revenue generation from property transactions in the capital city of Pakistan.
Key highlights of the announcement include:
1. Valuation Revision: The FBR has increased the valuation of immovable properties in Islamabad, marking a notable adjustment from the previous valuation rates outlined in notification No. SRO 672(I)/2016 dated August 02, 2016.
2. Sizeable Revenue Generation: The primary objective behind the valuation revision is to generate a more substantial revenue stream from property transactions in Islamabad. The upward adjustment is aligned with the FBR’s ongoing efforts to bring property valuations in line with current market dynamics and contribute to enhanced revenue collection.
3. Supersession of Previous Notification: The new valuation table, introduced through SRO 117(I)/2019, supersedes the rates prescribed in the earlier notification (SRO 672(I)/2016 dated August 02, 2016). This update reflects a recalibration of property values in response to changing market conditions and economic dynamics.
4. Income Tax Implications: The revised valuation rates will have direct implications for income tax calculations on property transactions in Islamabad. Individuals involved in such transactions are advised to be aware of the updated valuations to ensure compliance with tax regulations.
5. Transparent Process: The periodic reassessment of property valuations underscores the FBR’s commitment to transparency and fairness in tax assessments. By aligning valuations with market realities, the FBR aims to create an equitable taxation framework that accurately reflects the economic dynamics of the real estate sector.
6. Downloadable Valuation Table: The FBR has made the new valuation table for immovable properties in Islamabad available for download. This resource enables stakeholders, including property owners, buyers, and tax professionals, to access the details and stay informed about the updated rates.
The revision in property valuations for Islamabad follows similar initiatives in other major cities, including Karachi and Lahore. These adjustments are essential to capture changes in market conditions, ensure accurate tax assessments, and maintain investor confidence in the real estate sector.
While adjustments in property valuations may impact stakeholders, the FBR’s proactive approach to periodic reassessment is essential for fostering a conducive environment for property transactions. The real estate market is dynamic, and these measures contribute to the overall stability of the sector and the economy.
Stakeholders in Islamabad’s real estate market are encouraged to review the updated valuations provided by the FBR and seek guidance from tax professionals to navigate the implications of the revised rates. Ongoing communication from the revenue body is expected to keep the public informed about any future adjustments, contributing to a more transparent and responsive tax regime.
Black money will immidiately trapped and no new injection will be in market. This will surely give shocks to real estate market to decline for geniyne buyers. How can an investor with multiple names account can give his proof of income above 40lac when he will go to purchase a 2 crore house.