Income Tax Ordinance, 2001 — Section 68: Fair market value

68. Fair market value.— (1) For the purposes of this Ordinance, the fair market value of any property 1[or rent], asset, service, benefit or perquisite at a particular time shall be the price which the property 2[or rent], asset, service, benefit or perquisite would ordinarily fetch on sale or supply in the open market at that time.

(2)The fair market value of any property 3[or rent], asset, service, benefit or perquisite shall be determined without regard to any restriction on transfer or to the fact that it is not otherwise convertible to cash. 4[(3) Where the price 5[other than the price of immoveable property] referred to in sub-section (1) is not ordinarily ascertainable, such price may be determined by the Commissioner.] 6[(4) Notwithstanding anything contained in sub-sections (1) and (3), 7[the Board may, from time to time, by notification in the official Gazette, determine the fair market value of immovable property of the area or areas as may be specified in the notification] .] Chapter IV – Common Rules Explanation.—(1) For the removal of doubt, it is clarified that the fair market value as determined under sub-section (4) or(5) shall be for carrying out the purposes of this Ordinance only.

(2)It is further clarified that for the purposes of clauses (i) to (iv) of this sub-section if the fair market value determined under sub-section (4) or

(5)is different than the auction price the applicable price shall be the higher of the two.]