- August 11, 2023
- Posted by: Muhammad Shehzad
- Category: RBS News
The Federal Board of Revenue (FBR) is set to introduce an innovative online feature within the updated ‘IRIS’ system, allowing citizens to either claim exemptions or make a 1% tax payment under Section 7E for immovable properties, according to news published on August 06.
Reportedly, the board announced two significant developments for the real estate sector, which were aimed at bringing convenience and transparency to property transactions.
According to the sources, the FBR has introduced an online service that eliminates the need for taxpayers to physically visit the Commissioner of Inland Revenue’s office. Moreover, the development will effectively curb the concerns of exploitation during the exemption certificate application process.
Immovable Property Valuation
Furthermore, the FBR has also chosen to delay the rollout of new valuation tables for immovable properties until the upcoming month. Initially planned for release in August 2023, these revised property values. It will now be established in collaboration with committees set up in each city by the month’s end.
Meeting with FBR Representatives
The decisions, as disclosed following a meeting between FBR Chairman Amjad Zubair Tiwana and representatives. The real estate sector at the FBR Headquarters, holds particular significance. They addressed the requirement for every immovable property seller to acquire an exemption certificate. From the Commissioner of Inland Revenue or pay a 1% tax as stipulated by Section 7E of the Income Tax Ordinance.
Notably, all citizens of Pakistan, whether tax filers or non-filers are subject to the provisions outlined in Section 7E of the Income Tax Ordinance. Formerly, tax filers grant an exemption under this section were obliged to personally visit the relevant commissioner for exemption proof. In a forward-looking move, the FBR is poised to unveil a user-friendly online platform. It also streamlines the process of obtaining exemption certificates. It was highlighted that these initiatives mark a progressive stride in the real estate sector. Also, it embraces digitalization and efficiency while ensuring equitable taxation practices.