FBR clarifies asset valuation rules amid social media misinformation

FBR clarifies asset valuation rules amid social media misinformation

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September, 26 2025

(Web Desk):The Federal Board of Revenue (FBR) has clarified that taxpayers are free to declare the market value of their movable and immovable assets at their own discretion when filing tax returns for 2025, without the need for formal valuation reports or supporting documents.

The clarification follows confusion and misleading claims circulating on social media about supposed amendments to the return form. The FBR stressed that no statutory regulatory order (SRO) has been issued in this regard.

According to the FBR, this flexibility applies to most taxpayers, but high-net-worth individuals remain bound by stricter disclosure rules under Section 7E of the Income Tax Ordinance 2001. Asset data provided by such individuals is subject to more rigorous scrutiny as part of wealth documentation requirements.

So far, the FBR has received 2.7 million returns. However, scrutiny of filed documents revealed a widespread anomaly — many taxpayers had entered zero in the asset valuation section of the form. To close this loophole, the FBR has now technically restricted the option of entering zero in the valuation column.

“All taxpayers are now required to declare the market value of their assets,” said FBR Chairman Rashid Mahmood Langrial, adding that this was a technical adjustment, not a legal amendment. He clarified that asset declarations, except those made by high-net-worth individuals, are not used to calculate tax liability. Therefore, inaccuracies in the declared values will not trigger tax notices.

Even so, taxpayers have been urged to enter figures reasonably aligned with market conditions as a matter of transparency and good faith. The FBR further confirmed that those who have already filed their returns do not need to revise them, since asset valuation entries are not factored into tax assessments or reconciliation of wealth statements.

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The board also assured that the IRIS system remains fully functional and urged taxpayers to meet the September 30 deadline. Meanwhile, the Pakistan Tax Bar Association and Karachi Tax Bar Association have called on Finance Minister Muhammad Aurangzeb to investigate technical issues affecting the filing process, while also requesting an extension of the deadline to facilitate smooth compliance.