ProPropertyNewsKPTBA Urges FBR to Incorporate ‘Property Valuation Table’ into IRIS Portal

KPTBA Urges FBR to Incorporate ‘Property Valuation Table’ into IRIS Portal

KARACHI: The Karachi Tax Bar Association (KTBA) has urged the Federal Board of Revenue (FBR) to include a property valuation table in the IRIS portal to automate tax calculation under Section 7E of the Ordinance.

In a letter to the FBR chairman, the KTBA stated that a 20% tax had been imposed on deemed income calculated at 5% of the fair market value of capital assets located in Pakistan.

The fair market value is defined in Section 68 of the Ordinance and is also reported by the FBR via several SROs.

The letter stated that taxpayers and the legal community are concerned about the deletion of a tab previously available in the return to claim adjustment of previous refunds against the current year’s tax liability.

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The adjustment of a refund against the payable tax is a fundamental right of a taxpayer, according to KTBA, and refund adjustment has always been provided in return forms without any dispute.

The letter further proposed that taxpayers be allowed to compute and attribute their incomes based on the facts of their cases rather than prefixed tabs.

The relevant fields for entering the figures should be relaxed and open, according to the letter.

Currently, IRIS on the web portal is not catering to the initial depreciation allowance of 25% allowed on the purchase of plant and machinery under Section 23, resulting in an incorrect calculation of tax depreciation.

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