Sources told Business Recorder that the FBR has removed anomalies in valuation of residential and commercial properties as detected by the stakeholders. Through these SROs, the FBR has mostly decreased the valuation rates of immovable properties. This has been done to ensure to rectify issues in valuation of immovable properties in certain cases. The FBR had already categorized the different localities/areas for fixation of valuations of immovable properties across the country.
Under the SRO 20(I)/2018, the rate of valuation of immovable properties in Islamabad (residential) has been revised, under sub-section (4) of section 68 of the Income Tax Ordinance, 2001.
The valuation rates being calculated on the basis of per square yards have been decreased in three sectors of Islamabad ie Sector E-12, Sector I-15 and Sector I-16. Under SRO 19(I)/2018, the rate of valuation of immovable properties in Rawalpindi has been revised downwards, under sub-section (4) of section 68 of the Income Tax Ordinance, 2001. The rate of immovable properties in DHA-V Rawalpindi has also been specified through SRO 19(I)/2018.
Under SRO 18(I)/2018, the rate of valuation of few categories immovable properties in Karachi has been revised, under sub-section (4) of section 68 of the Income Tax Ordinance, 2001. In category-I, the value of immovable properties of industrial open plot per square yard and industrial built up property per square yard has been reduced.
As per SRO 17(I)/2018, rate of valuation of few categories of immovable properties in Lahore has been downward revised. These properties are located in Allama Iqbal Town, Shalimar Town and Nishtar Town. Under SRO 16(I)/2018, the rate of valuation of one category of immovable properties in Faisalabad has been revised downwards, under sub-section (4) of section 68 of the Income Tax Ordinance, 2001.
Under SRO 15(I)/2018, the rate of valuation of immovable properties in one category within Peshawar has been revised downwards under sub-section (4) of section 68 of the Income Tax Ordinance, 2001. In the past, the FBR had notified valuations for the purpose of calculation of payment of capital gains tax (CGT), withholding tax and provisions of section 111 of the Income Tax Ordinance 2001.
In the past notification, the area-wise categorization for valuation of Karachi revealed that the city was divided into 193 major areas/localities for valuations of immovable properties. Hyderabad was categorized into 80 areas for this purpose. In the case of Lahore, the board had notified rates for neighborhoods of Allama Iqbal Town, Aziz Bhatti Town, Data Gunj Buksh Town, Gulberg Town, Samanabad Town, Shalimar Town, Wagha Town and Nishtar Town. Lahore was divided into 231 areas for calculation of taxes on immovable properties. In the past, Sialkot was categorized into 355 different areas. Faisalabad was divided into 395 residential areas. The commercial areas of Faisalabad were divided into 416 areas. In total, the city was divided into 811 areas for this purpose.
In the case of Peshawar, the FBR had divided the whole Peshawar into 335 areas for valuation of residential and commercial properties per marla under the SRO 667(I)/2016. Under the SRO 669(I)/2016, Mardan city was categorized into 12 localities for valuation of residential and commercial properties.
In the past, Gwadar was divided into 96 areas and valuation of properties has to be determined on the basis of per acre, square yard and square feet. The city of Abbottabad was divided into seven areas under the SRO 668(I)/2016 while Gujranwala has been divided into 186 areas.