The Latest FBR Property Valuation Rates in Pakistan Official (2023)

FBR Valuation Rate is where they take Withholding Tax based on if you’re a “filer” or “non-filer.” FBR wants to know where this value comes from, like where the money comes from, and they want a good explanation.

You may contact/consult a licensed lawyer or any other professional sales agent who guides you through the process. 

While the property valuation certificate issued by the Excise and Taxation Department of the government, learn more about it on the following links:

For Punjab: https://excise.punjab.gov.pk/

For KPK: https://www.kpexcise.gov.pk/app/

For Islamabad (Federal Area): http://www.islamabadexcise.gov.pk/

For Sindh: https://excise.gos.pk/

For Balochistan: https://pabalochistan.gov.pk/

1% of the value as per FBR rates is collected for Tax Filer Seller. Whereas for Non-Tax Filer Seller, it is 2% of the FBR rates.

i. e. You are selling a 10-marla plot in a housing society wherein the FBR value is 2.5 Lacs/Marla. So the FBR rate for that plot will be Rupees 25 Lacs.

SROs stand for Statutory Regulatory Orders; this refers to all kinds of government regulations carried out by FBR and different ministries through delegated powers. These include SROs in the health sector, in taxes, in commerce, in energy, in the auto sector, etc.

In your case, the advance income tax under Section 236C at the time of sale shall
be collected from you @1% on the value determined by FBR at Rs.7,500,000/ which works out to Rs.75,000/. This tax is adjustable against tax payable on income earned in the financial year 2016-17. The capital gain on sales of the plot shall be Rs.7,500,000 – Rs.5,000,000 = Rs.2,500,000. That shall be declared in the return for the tax year 2017 relevant to the financial year 2016-17. The capital gain tax shall be payable @ 5% on a capital gain of Rs.2,500,000 i.e. Rs.125,000/-.
The above withholding tax of Rs.75,000/- is adjustable against the tax liability on all types of income including capital gain.

They’ll take 2% advance income tax, which is Rs. 240,000, from your brother since he’s a non-filer and the sale is for Rs. 12,000,000. He can use this advance tax to lower what he owes when he files his tax return.

Now, for the property’s capital gain: it’s Rs. 12,000,000 minus Rs. 6,000,000, making it Rs. 6,000,000. The tax on this is 5% because the property was bought before June 2016.

No. FBR-notified rates are for Federal taxes only. In your case advance income tax on the purchase of property under Section 236K shall be collected at the rate of 2% of sales consideration of Rs.9,000,000/- which comes to Rs.180,000/-. Yet, FBR rates don’t count for the stamp duty and other provincial taxes you have to pay.

No. He has not been empowered to re-determine the value of the property purchased on the valuation as determined by FBR for which advance tax under Section 236K
has been paid on such valuation.

Yes. The Commissioner of Inland Revenue can request an explanation from you regarding the source of funds used in the investment made in immovable property and may apply the provisions of unexplained income under section 111 after providing you with the opportunity to be heard.

No advance tax under Section 236C shall apply, at the time of registration of
property. Besides no capital gain tax under section 37(1A) of Income Tax. The ordinance shall be payable.

You owe tax on the capital gain for 2019, which is calculated as Rs. 10,000,000 minus Rs. 5,000,000, giving you Rs. 5,000,000. At a rate of 7.5%, that’s Rs. 375,000. This is because you’ve owned the property for over a year but less than two years.

Capital gain tax under section 37(1A) is levied on the difference between the deal price and the purchase price of the property. Such capital gain tax on immovable property cannot be collected by the registration authorities.

So, when you sell property, you need to pay the capital gain tax yourself when you file your income tax return.

For instance, if you sell property between July 2016 and June 2017, when you file your income tax return for the 2017 tax year, you’ll settle the capital gain tax after accounting for the advance tax you paid under section 236C.

FBR notification shall apply to the areas which are notified in such notifications.
District Officer Revenue or provincial or any other authorized authority for stamp duty will apply the value to the area that has not yet been notified.

FBR valuation shall apply to all the transfers of immovable properties from the 31st of July 2016. It is irrespective of receipt of the payment on sale of the property.

You’ll use the FBR valuation to pay upfront tax according to section 236C.

FBR will use the valuation determined to apply capital gain tax under section 37(1A). Taxpayers will need to declare income from capital gain in the return of income for tax year 2017.

The provision of advance income tax under section 236C in the case of the seller of
immovable property and provision of section 236K in the case of the buyer of immovable property shall apply on registration of immovable property. Both advance taxes shall also be applicable on attesting the transfer of immovable property.

In your case, there is an attestation of the transfer of immovable property in the Society, therefore, the Society is a withholding agent authorised to collect advance tax from the seller under section 236C and from the buyer under section 236K.