The Federal Board of Revenue (FBR) has the authority to value assets discovered as undeclared or concealed by taxpayers under Rule 228 of the Income Tax Rules, 2002, amended up to November 24, 2023. This rule empowers tax authorities to determine the fair market value of assets to ensure correct taxation under the Income Tax Ordinance, 2001.
1. Valuation of Immovable Property
Rule 228 specifies the following methods for valuing property:
• Fair Market Value (FMV) Notification: The FBR publishes FMV rates for specific areas. These rates serve as the standard valuation.
• District Officer or Authority Assessment: If no FBR notification exists, property value is set by the District Officer (Revenue) or authorized provincial authority for stamp duty purposes.
• Agricultural Land: Valued based on the average sale price in revenue records for the relevant period.
• Higher Sale Price Rule: If the sale price of a property exceeds the FMV, the higher amount is taken.
• Auctioned Property: The highest of auction price or FMV applies.
2. Valuation of Motor Vehicles
For cars and jeeps, Rule 228 provides detailed guidance:
| Type | Valuation Method |
| New Imported | C.I.F value + customs, duties, taxes, registration costs |
| New Local | Purchase price + all applicable taxes, duties, and registration costs |
| Used Imported | Import price + freight, insurance, taxes, duties, reduced by 10% per year up to 5 years |
| Used Local | Original cost reduced by 10% per year from the year of purchase/import |
| Minimum Value | Cannot be less than 50% of the computed value or purchase price |
3. Valuation for Donations
For donated assets to non-profit organizations:
• Imported Goods: Value = customs-assessed value + taxes and duties paid by donor
• Locally Manufactured Goods: Price as per purchase vouchers + applicable taxes
• Previously Used Goods: Written-down value after depreciation
• Vehicles: Valued per Rule 228 vehicle valuation methods
• Other Goods: Fair market value as determined by the Commissioner
4. Key Takeaways for Taxpayers
• Rule 228 ensures transparent asset valuation for undeclared or concealed assets.
• FBR considers FMV, purchase price, auction price, and depreciation to prevent underreporting.
• Accurate documentation and disclosure can prevent disputes and penalties.
💡 If you are a taxpayer with undeclared assets, you can check FBR’s FMV notifications online to estimate potential valuation and tax liability before any investigation.