FBR Needs E-banking for Punjab Properties: Tax Hike Presents a New Challenge
With an increase in taxes and a rise in the value of properties in Punjab, the Federal Board of Revenue (FBR) has declared that all types of property transactions must now be done through e-banking. Buying. and selling of properties would only be allowed through online banking, the FBR declared
One of the key issues related to this new rule has been the imposition of fines on property purchases made using non-banking methods. According to real estate analyst Muhammad Ahsan Malik, these fines are actually essential under Section 75A of the Income Tax Ordinance 2001.
The new rule states that a 5% penalty will be charged on properties valued over five million rupees, or other assets worth more than one million rupees, if they are purchased through non-banking transactions.
Malik cited a letter from the Punjab Board of Revenue to various officials, including the Registrar Cooperative. Societies, Director. General Punjab Land Records Authority, and District Registrars. This letter established that sub-registrars and assistant directors of Land Records had not enforced these penalties and that there was an unhappiness of the officials, in that regard.
The Board of Revenue has issued new instructions to ensure that these penalties are collected. All relevant field formations have been ordered to make sure. the penalties are enforced If the penalties are not collected, the officers handling the property transfers will be held accountable.
