The Federal Board of Revenue (FBR) now requires all income tax filers to declare the fair market value of any immovable property they own, buy, or sell in the 2025 tax year.
This new rule starts on July 1, 2025, under SRO 1213(I)/2025, which was issued on July 7, 2025.
Taxpayers Must Enter Property Details Manually
The new section in the tax return form asks taxpayers to manually fill in the fair market value and other property details. Even if the system fills this data automatically, the filer must re-enter it to confirm its accuracy.
If the filer skips this step or leaves details incomplete, the FBR may reject the tax return.
Who Will This Affect?
This rule applies to all individual taxpayers who own immovable property. This includes plots, houses, apartments, and commercial units.
Many filers previously declared property using older values or relied on system data. Now, the FBR wants each taxpayer to update these details with current market rates.
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Why the New Requirement Matters
This step aims to stop taxpayers from underreporting property values. By plugging the gap between actual market prices and declared values, the FBR hopes to increase transparency and collect more accurate taxes.
Experts say this could reduce loopholes in the real estate sector. But some worry about extra paperwork and confusion for people with multiple properties.
Tips to Avoid Filing Problems
The FBR Orders Taxpayers to double-check all property records. They should collect sale deeds, purchase agreements, and updated valuation figures.
Anyone unsure about the new requirement should consult a tax advisor to prevent mistakes that could lead to an invalid return.
