Question

What should be the value of inherited property to declare in IT return?

Answer 1

Inherited property is not taxable at the time of inheritance under the Income Tax Ordinance, 2001.
When declaring it in your tax return, you should enter the value at which the property was transferred to you (usually the value mentioned in the transfer/ownership documents or fair market value at time of transfer).

Always keep inheritance documents for verification in case FBR seeks clarification.

Comments

If I sell this inherited property now, what holding period would be counted and how the capital gain tax would be calculated.
My mother bought it in 1994. She died in 2023. I got the letter of administration from NADRA IN 2025.

Regards.