ISLAMABAD: Federal Board of Revenue (FBR) obtained information of buyers and sellers of immovable properties during the period July – December 2019.
According to media, the bulk of information was provided by provincial property registrar offices and housing societies along with complete details of buyers and purchasers. The information would be used for detecting concealment of tax money and quantum of black money used in transactions.
FBR detected huge gap between values of property declared at the time of registration or transfer with fair market values. The property registrar offices and housing societies on behalf of the FBR collect withholding tax and deposit the same into the national kitty. Besides, working as withholding agents they also require to provide information of buyers and sellers under Section 165 of Income Tax Ordinance, 2001.
The withholding agents under Section 165 are require to obtain information of persons making transactions such as: name, Computerized National Identity Card Number (CNIC), National Tax Number (NTN), and address of each person from whom tax was collected or to whom payments were made from which tax was deducted.
As per law the withholding agents are required to provide details of all transactions and persons involved to the FBR by January 31, 2020 for the period July – December 2019.
The real estate business is believed to parking lot for black money in Pakistan. Over the last few years the FBR made significant progress to encourage clean transactions in buying and selling of immovable properties.
