\nISLAMABAD: Federal Board of Revenue (FBR) has proposed new valuation benchmarks for unexplained and undeclared immoveable property such as open plot, agricultural land and constructed immovable property for taxation purposes.\n<\/p>\n
\nHidden assets upon detection by the tax authorities would be valued for taxation according to the District Officer Revenue or provincial authority authorised stamp duty rates in case of open plot. Agricultural land value to be determined according to the provincial revenue record and value of constructed immovable property shall be determined at the fair market value or value fixed by the District Officer (Revenue) which ever is higher.\n<\/p>\n
\nFBR had allowed existing as well as new taxpayers to get legalised by paying 2 percent investment tax by declaring their unexplained or hidden assets by December 31, 2008.\n<\/p>\n
\nNow onwards, the tax authorities are expected to launch a drive to detect hidden or unexplained immoveable property for realising due taxes from these tax defaulters according to the proposed amendments in the Income tax rules.\n<\/p>\n
\nThe Proposed Rule 228 states that for sub-rule (1) the following shall be substituted, namely: \u201c(1) The valuation of immovable property for the purposes of section 111 shall be taken to be-(a) in the case of open plot, the value determined by the development authority or government agency on the basis of the auction price in respect of similar plots in the area where the plot in question is situated or in case where such value is not determined, the value fixed by the District Officer Revenue or provincial authority authorized in this behalf for the purposes of stamp duty; (b) in the case of agricultural land, the value equal to the average sale price of the sales recorded in the revenue record of the estate in which the land is situated for the relevant period or time; or \u00a9 in the case of constructed immovable property, value shall be determined at the fair market value as defined in section 68 or the value fixed by the District Officer (Revenue) whichever is higher.\u201d;\n<\/p>\n
\nSection 111 of the Income tax Ordinance, 2001 related to the Unexplained Income or assets which states that where (a) any amount is credited in a person\u2019s books of account; (b) a person has made any investment or is the owner of any money or valuable article; or \u00a9 a person has incurred any expenditure, and the person offers no explanation about the nature and source of the amount credited or the investment, money, valuable article, or funds from which the expenditure was made or the explanation offered by the person is not, in the Commissioner\u2019s opinion, satisfactory, the amount credited, value of the investment, money, value of the article, or amount of expenditure shall be included in the person\u2019s income chargeable to tax under head \u201cIncome from [Other Sources\u201d] to the extent it is not adequately explained. (2) The amount referred to in sub-section (1) shall be included in the person\u2019s income chargeable to tax in the tax year [immediately preceding the financial year] in which it was discovered by the Commissioner.1[(3) Where the declared cost of any investment or valuable article or the declared amount of expenditure of a person is less than reasonable cost of the investment or the valuable article, or the reasonable amount of the expenditure, the Commissioner may, having regard to all the circumstances, include the difference in the person\u2019s income chargeable to tax under the head \u201cIncome from Other Sources\u201d in the tax year immediately preceding the financial year in which the difference is discovered.\n<\/p>\n
\nExisting Rule 228 on valuation of assets.- (1) The valuation of immovable property for the purposes of section 111 of the Income Tax Ordinance 2001, shall be taken to be-(a) in the case of open plot, the value determined by the development authority or government agency on the basis of the auction price in respect of similar plots in the area where the plot in question is situated; (b) in the case of properties given on rent, the value equal to ten years capitalized value assessed on the annual rental value; \u00a9 in the case of agricultural land, the value equal to the average sale price of the sales recorded in the revenue record of the estate in which the land is situated for the relevant period\/ time; or (d) in any other case, the value determined by the District Officer (Revenue) or provincial authority authorized in this behalf for the purposes of stamp duty.<\/p>\n","protected":false},"excerpt":{"rendered":"
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