Tax Book 2023

Income From Other Sources Chapter- 13

(A) IN THE CASE OF

IMMOVABLE

PROPERTY WHERE

MARKET VALUE

NOTIFIED BY THE

BOARD

the fair market value of immovable property shall be the value notified by

the Board under sub-section (4) of section 68, in respect of area or areas

specified in the said notifications

(B) IN THE CASE OF

IMMOVABLE

PROPERTY WHERE

MARKET VALUE NOT

NOTIFIED BY THE

BOARD

if the fair market value of any immovable property of any area or areas has

not been determined by the Board in the notification referred to in sub-

section (4) of section 68, the fair market value of such immovable property

shall be deemed to be the value fixed by the District Officer (Revenue) or

provincial or any other authority authorized in this behalf for the purposes of

stamp duty; and

(C) IN THE CASE OF

AGRI LAND

in the case of agricultural land, the value shall be equal to the average sale

price of the sales recorded in the revenue record of the estate in which the

land is situated for the relevant period or time;

(D) WHERE

RECORDED VALUE IS

HIGHER THAN FMV

if in a case sale price recorded in the instrument of sale of any property is

higher than the fair market value as determined under clauses (a), (b) and

(c), the applicable price shall be higher of the two; and

(E) IN CASE OF

AUCTIONED

PROPERTY

in the case of sale price of any auctioned property or the fair market value

as determined under clauses (a), (b) and (c), the higher price shall be

applicable.

The valuation of motor cars & jeeps U/R 228(2) & (3) for the purposes of section 111 & 61 shall be

taken to be-

MOTOR CARS &

JEEPS U/R 228(2)

(i) Imported new motor cars or jeeps: CIF value to donor (i.e. Cost,

Insurance & Freight) + Duties and charges till their registration.

(ii) Locally newly purchased motor cars or jeeps: Price paid by the

donor + Duties & charges till their registration.

(iii) Import of used motor cars or jeeps: Value at the import price

adopted by the Custom Authorities + Charges & duties till their

registration.

(iv) Value adopted in the first year shall be reduced by 10% of the said

value (i.e. on straight line basis) for each successive year up to a

maximum of 5 years.

(v) Used motor cars or jeeps locally purchased shall be valued as:

If motor cars or jeeps are up to 5 years old, value shall be original

cost as reduced by 10% for every year following the year in which it

was imported or purchased.

If motor cars or jeeps are more than 5 years old, value shall be

higher of purchase price paid by the donor for the used car or

50% of the original value.

MOTOR CARS &

JEEPS U/R 228(3)

In no case shall the value be determined at an amount less than 50% of the

value determined in accordance with (i), (ii) & (iii) or the purchase price,

whichever is higher.

20. Donation in kind [rule 228(4)]