In Islamabad, the Federal Board of Revenue (FBR) has announced two important updates related to real estate. Firstly, they were planning to release new property value tables in August 2023, but now they’re pushing that to the next month. They want to work with committees in each city to figure out these new property values.
Secondly, the FBR will add a new feature to their updated “IRIS” system online. This will allow everyone to either ask for an exception or pay a 1 percent tax for properties they own. This change means people won’t have to go to the tax office in person to get exemption certificates. This should help reduce worries about corruption when getting these certificates.
These decisions were made after a meeting between the FBR Chairman, Amjad Zubair Tiwana, and people from the real estate field at the FBR Headquarters.
Before this, if someone wanted to sell a property, they had to either get an exemption certificate from the tax office or pay a 1 percent tax based on a rule called section 7E of the Income Tax Ordinance.
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Both filer and non-filer citizens of Pakistan are obligated to comply with section 7E of the Income Tax Ordinance.
In the past, filers eligible for exemption from section 7E had to personally visit the relevant commissioner to obtain the exemption certificate. However, the FBR has made arrangements to introduce an online platform for acquiring the exemption certificate, streamlining the process.