LAHORE: The Federal Board of Revenue (FBR) has set that transactions regarding the buying and selling of property should be done through online banking means, as the citizens in Punjab are facing a new challenge regarding property transactions, following recent heavy taxation and increased property values.
The new issue involves penalties that will be enforced on property purchases made through non-banking transactions.
Real estate expert Muhammad Ahsan Malik highlighted that this penalty is mandated under Section 75A of the Income Tax Ordinance 2001.
According to the regulation, a penalty of 5% will be charged on properties with a fair market value exceeding five million rupees or on other assets valued over one million rupees when purchased through non-banking means.
Malik referenced a letter from the Board of Revenue of Punjab, which was addressed to key authorities including the Registrar Cooperative Societies, the Director General of Punjab Land Records Authority, and District Registrars.
He noted that during a recent pre-PAC meeting, it was revealed that sub-registrars and assistant directors of Land Records had not been collecting these penalties, leading to dissatisfaction among officials.
In response, the Board of Revenue has issued directives to ensure compliance, instructing all relevant field formations to collect the required penalties on non-banking transactions. Failure to collect the penalties will hold the transferring attesting officers accountable, Malik emphasized.
