The FBR’s inherited property tax proposal would charge capital gains tax on the increase in value when inherited property is sold, officials told a National Assembly panel.
Federal Board of Revenue officials presented the proposal during a meeting of the National Assembly Standing Committee on Finance, chaired by Syed Naveed Qamar.
Officials said the inherited property’s value would be treated as the market value on the date of the owner’s death. They said a property transferred through a family settlement would also receive legal protection.
The FBR explained that if a plot was worth Rs8 million when the owner died and was later sold for Rs10 million, tax would apply only to the Rs2 million gain.
Qamar advised that authorities should calculate the property’s original value from the date of formal ownership transfer, not the date of death. The committee then suggested using the transfer-of-ownership date to determine real value.
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The standing committee also approved a proposal to require taxpayers to file income tax returns only electronically.
FBR officials said taxpayers would use the IRIS system for electronic returns. Companies would also need to submit financial statements in machine-readable formats.
Officials said the FBR has moved largely toward digital filing since 2013. However, some cities, including Gujranwala, still submitted manual returns.
