{"id":23455,"date":"2016-10-31T16:13:36","date_gmt":"2016-10-31T11:13:36","guid":{"rendered":"http:\/\/www.zameen.com\/blog\/?p=23455"},"modified":"2017-12-11T12:30:08","modified_gmt":"2017-12-11T07:30:08","slug":"fbr-shares-rules-to-probe-property-investments","status":"publish","type":"post","link":"https:\/\/www.zameen.com\/news\/fbr-shares-rules-to-probe-property-investments.html","title":{"rendered":"FBR shares rules to probe property investments"},"content":{"rendered":"

\"FBR<\/p>\n

The Federal Board of Revenue (FBR) has issued income tax rules, specifying procedures for the valuation of immoveable assets. The board has made it clear that the fair market value of property will be the value notified by the FBR through its valuation tables. It has clarified the matter to ensure that there is no ambiguity in the investigation process, through which cases of unexplained assets and investments made into the property sector will be probed under Section 111 of the Income Tax Ordinance 2001. To define the procedure for asset valuation, FBR has issued Income Tax Rules 2002 through S.R.O 978 (I) 2016.<\/p>\n

With these rules, FBR gives legal cover to investigate property transactions and probe the sources of investment. Currently, three different kinds of values are used to register properties: DC rate of the property, FBR\u2019s fair market value as listed in the valuation tables<\/u><\/a>, and the value mentioned on the sale agreement, which is the actual price at which the property transaction takes place. If the tax authority is able to identify the actual value of the property through the agreement or bank transaction receipt, it will form the actual basis to probe the source of investment under section 111 of the Income Tax Ordinance.<\/p>\n

According to a notification issued by FBR, the value of property determined for the purposes of Section 111 of the Income Tax Ordinance 2001 shall be:<\/p>\n