Islamabad – The real estate sector has urged the National Assembly Standing Committee on Finance and Revenue to amend “The Tax Laws (Amendment) Bill, 2024” to allow property transactions of up to Rs 50 million without requiring buyers to disclose their source of income.
(more…)Tag: property valuation
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FBR Gets Proposal to Align Property Valuations with FMV
Karachi, April 23, 2024 – The Federal Board of Revenue (FBR) is reviewing a pivotal proposal from the Pakistan Business Council (PBC) aimed at enhancing property valuations to align closer with the fair market value (FMV).
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FBR to Update Property Valuations Based on FTO Suggestions
Karachi, February 18, 2024 – The Federal Board of Revenue (FBR) is gearing up to update immovable property valuations, aligning them with fair market prices, in response to recommendations from the Federal Tax Ombudsman (FTO).
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PTBA identifies ambiguity in property value declaration
Pakistan Tax Bar Association (PTBA) on Tuesday identified ambiguity in declaring of immovable property in income tax return filing.
PTBA President Rana Munir Hussain in a letter to the chairman of Federal Board of Revenue (FBR) stated that the apex tax bar had received several representations from the members of different affiliated tax bars across the country; one of the reasons of delay in filing of Income Tax Return for the Tax Year 2022 in is an ambiguity in declaration of value of the properties purchased and sold during the year.
READ MORE: FBR allows refund adjustment to facilitate return filing
The said burning issues need the consideration of the FBR in the light of prevailing circumstances.
In this respect tax bar summarized the following questions: –
Question No. 1
A tax payer sold his immovable property in consideration of Rs.6,000,000/- through a written agreement to sell during the tax year 2022 and received the said amount in shape of pay order as provided u/s 75A of the Income Tax Ordinance 2001.
READ MORE: FPCCI seeks statutory time for return filing after error removals
Whereas at the time of execution of sale deed the parties were compelled to mention the sale price at Rs.7,500,000/- as per rate notified by the D.C being minimum price.
The PTBA urged the FBR to clarify that can the tax payer (seller) incorporate the sale proceed at Rs.7,500,000/- as appearing on the registered sale deed in his wealth reconciliation statement or he will have to record the actual consideration of Rs.6,000,000/- received from the buyer?
Question No. 2
A tax payer sold his immovable property through agreement to sell in consideration of Rs.40,000,000/- and received the said amount in shape of pay order as provided u/s 75A of the Ordinance.
READ MORE: FBR advised to extend tax return filing date for three months
Sale deed was executed at Rs.45,000,000/- being the minimum price notified by D.C.
On the other hand, the seller as well as the buyer paid the tax u/s 236C and 235K at the value fixed by FBR i.e. Rs.6,500,000/-.
Clarification is sought.
Whether the seller can record in his wealth statement the amount at Rs.65,000,000/- whereas in actual, he received Rs.40,000,000/-.
What price of the asset has to declared by the buyer in his wealth statement?
READ MORE: PTBA suggests measures to resolve refund adjustment ahead return filing deadline
The actual price paid at Rs.40,000,000/- ; OR
The price fixed by D.C. at Rs.45,000,000/-; OR
The price fixed by FBR at Rs.65,000,000/-.
In the light of the submissions made above it is requested to issue a clarification as early as possible. Moreover, timely decision taking in this regard would not only be appreciated by the taxpayers/legal fraternity, who are working very hard day and night by playing their part towards the legal responsibility for contributing towards national exchequer but also in collection of taxes at the appropriate time.
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FBR revises property valuation for Gwadar areas
In a strategic initiative aimed at enhancing tax collection and ensuring fair market valuation, the Federal Board of Revenue (FBR) has revised the valuation of properties in the Gwadar region. The move, outlined in the SRO 1271(I)/2022 dated August 01, 2022, represents a crucial step in aligning property valuations with current market dynamics.
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FBR issues new property valuation for Islamabad from August 01, 2022
The Federal Board of Revenue (FBR) has introduced new valuations for immovable properties in Islamabad, effective from August 01, 2022.
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FBR amends fresh property valuations for Islamabad
ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday made changes to property valuation tables for the capital city.
The FBR issued SRO 428(I)/2022 dated March 15, 2022 to a make amendment in the SRO 342(I)/2022 dated March 02, 2022.
Through the latest SRO the FBR withdrew the property valuation tables for DHA Phase 1 – 5 and DHA Valley for both residential and commercial plots.
READ MORE: FBR re-notifies valuation of immovable properties
The following entries in the valuation tables have been deleted for residential immovable properties:
62 DHA Phase 1 Any size 30,000 63 DHA Phase 2 Any size 35,000 64 DHA Phase 2 Extn Any size 8,264 65 DHA Phase 3 Any size 16,529 66 DHA Phase 4 Any size 9,917 67 DHA Phase 5 Any size 19,835 68 DHA Valley Any size 8,264 Similarly, following entries in the valuation tables have been deleted for commercial immovable properties:
171 DHA Phase 1 Commercial plot 23,900 172 DHA Phase 2 Commercial plot 22,200 173 DHA Phase 2 Extn Commercial plot 9,183 174 DHA Phase 3 Commercial plot 9,183 175 DHA Phase 4 Commercial plot 9,183 176 DHA Phase 5 Commercial plot 18,365 177 DHA Valley Commercial plot 2,755 The FBR on December 01, 2021 issued fresh and updated valuation tables for around 40 major cities of the country. However, the FBR deferred the implementation of the new valuations of immovable properties till January 15, 2022 and further deferred till January 31, 2022. The FBR once again deferred the implementation on the valuation table till February 28, 2022.
The revised tables of valuation of immovable properties have been issued and implemented on March 02, 2022.
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FBR allows 20-year old house value to open plot
ISLAMABAD: The Federal Board of Revenue (FBR) has allowed the value of immovable property constructed more than 20 years equal to the value of open plot.
According to property valuation for Karachi issued through SRO 345(I)/2022, the FBR issued a fresh property valuation for the residential and open plots located in various parts of the city.
READ MORE: FBR re-notifies valuation of immovable properties
The property registrar of the provincial government will collect withholding tax on the behalf of the FBR on the basis of property valuation fixed by the federal tax authority.
The FBR allowed reduction in valuation of properties on the basis of age of the built up structure.
It said that the value of residential built up property (including basement and first floor) is allowed to be reduced according to the following criteria:
01. Age of built up structure up to five years: no reduction is allowed in value.
02. Age of built up structure between five to 10 years: five per cent has been allowed as reduction in value.
03. Age of built up structure between 10 to 15 years: 7.5 per cent has been allowed as reduction in value.
04. Age of built up structure between 15 to 20 years: 10 per cent has been allowed as reduction in value.
05. Age of built up structure more than 20 years: the value shall be equal to an open plot.
The FBR further allowed reduction in value of built up properties (flats and apartments) according to following criteria:
01. Age of built up structure up to five years: no reduction will be allowed in value.
02. Age of built up structure between five to 10 years: 10 per cent has been allowed as reduction in value.
03. Age of built up structure between 10 to 20 years: 20 per cent has been allowed as reduction in value.
04. Age of built up structure between 20 to 30 years: 30 per cent has been allowed as reduction in value.
05. Age of built up structure more than 30 years: 50 per cent has been allowed as reduction in value.
The FBR also allowed reduction in value of commercial built up property according to the following criteria:
01. Age of built up structure up to 10 years: no reduction is allowed.
02. Age of built up structure between 10 to 15 years: 5 per cent has been allowed as reduction in value.
03. Age of built up structure between 15 to 20 years: 8 per cent has been allowed as reduction in value.
04. Age of built up structure more than 20 years: 10 per cent has been allowed as reduction in value.
The FBR said that the value of Commercial Plots of Defence Housing Authority facing Khayaban is increased by 10 per cent.
The value of commercial built up excluding ground floor has been reduced by 25 per cent.
The value of Residential Plots (Defence Housing Authority) of following categories may be decreased by 25 per cent:-
01. Nala facing plot
02. Commercial facing plot
03. School facing, mosque facing plot/Graveyard facing plot.
04. Rear plot (Back Side plot)/Triangle plot
For further details download new FBR’s property valuation for Karachi city.
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FBR postpones new property valuation till February 28
ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday postponed the implementation of new and revised valuation of immovable properties till February 28, 2022.
The FBR said that new and revised valuation tables of immovable properties issued on December 01, 2021 would remain in abeyance till February 28, 2022 and those valuation tables would be re-notified on March 01, 2022.
The FBR on December 01, 2021 issued fresh and updated valuation tables for around 40 major cities of the country. However, the FBR deferred the implementation of the new valuations of immovable properties till January 15, 2022 and further deferred till January 31, 2022.
The FBR on December 01, 2021 issued fresh and upward revised valuation tables for immovable properties located in 40 major cities of the country.
READ MORE: FBR issues new, revised tables of property valuation
The revenue body decision to defer the implementation came after several complaints received by the FBR those were pertaining to high valuation in the new tables.
The complaints were lodged by stakeholders including real estate agents and town developers, who pointed out extraordinary rise in property rates in the latest valuation tables.
The FBR issued detailed instructions to the tax offices on the procedure to be adopted to review the anomalies in the property rates and rationalize the same.
READ MORE: FBR’s new, old valuation tables for Karachi properties
Accordingly, it has been decided to review and revisit the notified valuation tables wherever overvaluation or undervaluation is pointed out by a stakeholder.
The FBR asked all the Chief Commissioners Inland Revenue (CCIRs) to constitute Valuation Review Committees (VRCs), and notify them by December 10, 2021.
Any stakeholder having any reservations about valuations may lodge a representation before VRC by December 15, 2021. Chief Commissioners will undertake consultative process with the stakeholders and engage SBP’s approved valuers for determination of values, which could be either more or less than the lately notified valuations.
To issue the fresh and revised valuation tables, the FBR exercised its powers vested in the Income Tax Ordinance, 2001. The aim was to bring the FBR values at par with the fair market values.
However, certain objections from stakeholders highlighted anomalies and aberrations in the newly notified valuation tables. Although, the notified valuations have been arrived at by FBR Field Formations through a rigorous consultative process and wherefore have largely been well-received, yet the possibility of error cannot be ruled out, and the same cannot be taken as carved in stone.
The VRCs shall decide upon the representations by January 10, 2022, and forward the same to FBR for notification. All recommendations made by VRCs vis-à-vis revaluations shall be re-notified on January 15, 2022, which shall come into force on January 16, 2022. In the meantime, SRO No.1534-1572(I)/2021 dated 01.12.2021 are held in abeyance to allow registration of the in-process transactions.
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FBR to re-notify property values on February 01
ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday said it will re-notify the valuation of immovable properties on February 01, 2022. The FBR further said that the valuation issued on December 01, 2021 will remain in abeyance till January 31, 2022.
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