15/07/2025
*FBR Orders Taxpayers to Declare the Real Value of Their Property in 2025 Returns*
*✅ Key Points:*
*FBR Directive:*
The Federal Board of Revenue (FBR) has instructed taxpayers to declare the actual fair market value of their immovable properties in their tax returns for Tax Year 2025.
*Background:*
Historically, property was declared at FBR-notified valuation tables, which are usually much lower than market rates. This practice led to widespread under-reporting of wealth and reduced tax collection.
*Why Now?*
This step is part of Pakistan’s commitments to the IMF and efforts to document the real economy and curb tax evasion.
*Valuation Basis:*
The declared property values must be based on fair market value.
Taxpayers are responsible for accurately reflecting this in their tax return.
Any discrepancies could lead to penalties, audits, or legal action.
*Implications for Taxpayers:*
Higher declared values may result in higher Capital Gains Tax and Wealth Statements.
Property buyers and sellers should ensure their transactions reflect true market prices.
The measure may impact real estate investment trends and discourage undervaluation.
*Compliance:*
FBR will cross-check declarations against market data, registrar records, and other sources. Non-compliance could trigger enforcement action.
*Reference:*
https://propakistani.pk/2025/07/14/fbr-orders-taxpayers-to-declare-real-value-of-their-property-in-2025-returns/
The Federal Board of Revenue (FBR) has made it mandatory for income tax return filers for the tax year 2025 to declare the fair market value of immovable
