KARACHI: Federal Board of Revenue (FBR) has issued Income Tax Rules, 2002 through S.R.O.978(l)/2O16 to specify procedure for valuation of assets for the purposes of section 111 of the Income Tax Ordinance.
According to details notified by the FBR that amendment in Rule 228 of Income Tax Rule 2002, the fair market value of immovable property shall be the value notified by the board under sub-section (4) of section 68, in respect of area or areas specified.
The SRO said that the fair market value of such immovable property shall be deemed to be the value fixed by the district officer (Revenue) or provincial or any other authority authorized in this behalf for the purpose of stamp duty.
It is also briefed that in the case of agricultural land, the value shall be 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.
In a case sale price recorded in the instrument of sale of any property is higher than the fair market value as determined under clause (a) (b) (c). the applicable price shall be higher of the two.
It is also attributed that in case of sale price of any auctioned property or the fair market value will be determined under clause (a) (b) and (c), the higher price shall be applicable.
