Immoveable properties: Old valuation rates applicable till new notification: FBR

The Federal Board of Revenue (FBR) has clarified that the existing FBR valuation rates for immoveable properties, notified on February 1, 2019, will remain applicable till official notification of new rates is being issued. According to income tax circular number 8 of 2019 issued by the FBR, the
FBR has uploaded proposed valuation tables for immoveable property of various cities of Pakistan on its official website on June 21, 2019 for views and comments. The aforesaid valuation tables are in process of finalization. It has been observed that an ambiguity/confusion exists with respect to prevalent FBR''s Valuation rates for immoveable property, therefore it is clarified that until the official notification of new rates, the existing rates notified on 01.02.2019 shall be applicable for carrying out the purposes of Income Tax Ordinance, 2001, FBR circular added.
The FBR has proposed enhanced values of immovable properties in 18 cities except Karachi and Quetta. According to the FBR, the Board intends to revise the value of immovable properties in various cities of Pakistan from July 1, 2019. The proposed draft of valuation tables for various cities was placed for the stakeholders for views and comments. The values has been proposed to be increased on properties located in Islamabad, Abbottabad, Lahore, Bahawalpur, Faisalabad, Peshawar, Rawalpindi, Multan, Mardan, Jhang, Gujrat, Sukkur, Gujranwala, Hyderabad, Sialkot, Sargodha, Sahiwal and Jhelum. At present, the Board has issued valuation tables of immovable properties in 21 major cities wherein such properties are valued at a value higher than the DC rates.
The purchasers are also required to pay 3% tax on the difference between the DC value and FBR value of property to explain the source of investment to the extent of differential between FBR value and DC value. The rates notified by the Board are still considerably lower than actual market value. It is therefore intended that FBR rates of immovable properties would be taken closer to or about 85% of actual market value, the FBR added.