FBR Now Requires Actual Property Market Value in Tax Returns 2025

Islamabad – July 14, 2025:
The Federal Board of Revenue (FBR) has introduced a new requirement for all taxpayers to declare the actual market value of properties in their income tax returns for the tax year 2025. The directive applies to all immovable properties—land or buildings—whether owned, purchased, or sold.

Effective from July 1, 2025, this new rule was outlined through SRO 1213(I)/2025, issued on July 7, 2025. The FBR’s updated electronic return form now includes a dedicated section requiring taxpayers to manually input details of each property, including its current market price, regardless of any auto-filled data already present in the system.

Taxpayers must also reconfirm all previously declared properties and re-enter their details manually, ensuring accuracy and completeness of information. The move is aimed at curbing the widespread issue of undervaluation in real estate transactions and ensuring transparency in asset disclosures.

FBR officials have stated that failure to comply with this requirement may result in penalties, audit flags, or further legal scrutiny. The initiative is part of FBR’s broader strategy to tighten documentation and expand the tax base through improved property record verification.

Tax professionals are advising individuals and businesses to reassess their property records and seek updated valuations before filing their returns to avoid discrepancies.