ISLAMABAD: The Federal Board of Revenue Inland Revenue, withholding zone, has clarified that the FBR’s notified rates for the evaluation of residential and commercial properties are equally applicable on the constructed and un-constructed plots.
The withholding zone has issued a clarification to all development authorities regarding the rates of immovable property and application of sections 236C, 236K and 236w of the Income Tax Ordinance 2001.
According to the clarification, the Federal Board of Revenue Inland Revenue has urged all the development authorities that income tax is required to be deducted under sections 236C and 236K of the Income Tax Ordinance 2001 on value of immoveable property as notified by the FBR through SRO in the true letter and spirit.
The FBR also clarified that section 236W is applicable where FBR notified value of property is greater than the registered value of the immovable property. FBR cleared that notified rates are applicable for the purpose of Federal Taxes only which means that taxes under the head stamp duty and other provincial taxes shall be calculated as per rules framed by the provincial government. CVT or any other provincial tax being provincial issue shall be calculated upon the DC rates and not upon the FBR notified rates.