ISLAMABAD: The Federal Board of Revenue (FBR) made two significant decisions pertaining to the real estate sector. The release of new valuation tables for immovable properties has been delayed until the following month. Additionally, the FBR has opted to implement an online facility for all citizens within the updated “IRIS” system.
As per the sources, the FBR has decided to postpone the release of new valuation tables for immovable properties until the next month.
The FBR had initially planned to introduce higher property values in August 2023. However, they will now determine these new values through collaboration with committees.
These committees will be established in each city by the end of the current month.
The FBR has made another decision to implement an online facility within the “IRIS” updated system. This facility will allow all citizens to either obtain exemption or pay a one percent tax under section 7E for immovable properties.
Taxpayers won’t need to visit the concerned Commissioner Inland Revenue (FBR) because of this new online feature.
The “IRIS” updated system is introducing an online facility. This online facility aims to address the concern of corruption. It will specifically target the process of individuals seeking exemption certificates. The exemption certificates are issued by the Commissioner of Inland Revenue. The introduction of the online facility is expected to put an end to corruption concerns related to this process.
The decisions were made during a meeting held at the FBR Headquarters. The meeting involved FBR Chairman Amjad Zubair Tiwana and representatives from the real estate sector.
Streamlining Property Exemption Process in Pakistan
It’s important to highlight that every seller of immovable property was obligated to acquire an exemption certificate from the Commissioner Inland Revenue. Alternatively, they were required to pay a 1 percent tax under section 7E of the Income Tax Ordinance.
Both filers and non-filers of income tax returns in Pakistan are subject to the process of section 7E of the Income Tax Ordinance.
In the past, filers eligible for exemption under section 7E had to personally visit the concerned commissioner to obtain the necessary exemption certificate.
However, the FBR is now gearing up to introduce a user-friendly online facility for acquiring the exemption certificate. This move aims to streamline the process and eliminate the need for physical visits.
