Two key decisions concerning the real estate industry were made by the Federal Board of Revenue (FBR). New immovable property valuation tables won’t be available until the following month.
The revised “IRIS” system will now include an online facility for all citizens, according to the FBR.
According to the sources, the FBR has decided to wait until the following month to publish new value tables for immovable properties.
In August 2023, the FBR initially intended to establish increased property valuations. They will now choose these new values in consultation with committees, nevertheless. By the end of this month, these committees will be constituted in each city.
The FBR has again decided to include an online facility in the new “IRIS” system. All citizens will be able to use this facility to either receive an exemption from section 7E’s tax on immovable properties or pay a one percent tax.
Due to this new online capability, taxpayers won’t need to go see the relevant Commissioner of Inland Revenue (FBR).
An online facility is being introduced by the improved “IRIS” system. This online resource seeks to address the corruption issue. It will focus primarily on the procedure for people applying for exemption certificates.
The Commissioner of Inland Revenue issues the exemption certificates. It is anticipated that the implementation of the online facility will put an end to concerns about corruption in this procedure.
During a meeting conducted at the FBR Headquarters, the decisions were reached. Amjad Zubair Tiwana, the chairman of the FBR, and members from the real estate industry attended the conference.
It’s crucial to emphasize that each seller of real estate was required to get an exemption certificate from the Commissioner of Internal Revenue. As an alternative, they had to pay a 1% tax in accordance with section 7E of the Income Tax Ordinance.
In Pakistan, those who file income tax returns and those who do not are both subject to the procedures outlined in Section 7E of the Income Tax Ordinance.
In the past, filers who qualified for section 7E exemption had to travel to the concerned commissioner’s office to pick up the required exemption certificate.
The FBR is already preparing to launch a user-friendly online facility for obtaining the exemption certificate, nevertheless. This action intends to simplify the procedure and do away with in-person meetings.
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