ISLAMABAD: The Government of Pakistan on Wednesday made an important amendment to Section 68 of the Income Tax Ordinance 2001 through the Finance Act 2016, which will be effective from July 1.
The fresh amendment will allow the Federal Board of Revenue (FBR) to estimate the value of properties in order to limit tax evasion.
The Board, which comprises income tax experts, bankers and chartered accountants, will serve as government’s helping hand in the matter.
Under the amendments, the real market value of immovable properties will be determined after valuations by the State Bank of Pakistan and be referred to the FBR Inland Revenue Department.
This is expected to bring black money into the tax net and allow for the imposition of high penalties on tax evaders under Section 192-A. The penalties can amount to 100 percent of the evaded tax and will be in addition to the additional tax imposed on the evaders.