LAHORE: The Punjab government has decided that a 5 percent penalty will be imposed on the purchase of property through non-banking transactions under the Income Tax Ordinance 2001.
According to a media report, the decision will be applicable to those who purchase property through other methods instead of transactions through banks.
The Board of Revenue Punjab has issued a letter in this regard, in which the Registrar Cooperative Societies, Director General Punjab Land Record Authority, District Registrars, and Deputy Commissioners have been directed to ensure the implementation of these rules.
The letter clarified that if the value of the property is more than Rs. 5 million or any other asset is worth more than Rs. 1 million, a 5 percent penalty will be charged on non-banking transactions.
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During the Pre-PAC meeting, chaired by a senior member of the Board of Revenue, it was revealed that land records officers, including sub-registrars and assistant directors, have been negligent in collecting fines on non-banking transactions.
The authorities expressed their displeasure over the situation and directed all field officers to immediately collect the fines. These steps are being taken to bring transparency in the purchase and sale of property and to check tax evasion.
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New Conditions Under the Income Tax Ordinance 2001:
- If the fair market value of the immovable property exceeds Rs. 5 million, a penalty of 5% shall be collected.
- The same rate will also be applicable to other assets whose value exceeds Rs. 1 million.
On the other hand, the FBR has imposed heavy penalties by sealing three major hotels in Islamabad. At the same time, the Board of Revenue Punjab issued a letter in which it instructed the Registrar Cooperative Societies, Punjab, and other concerned officers to collect penalties on non-banking transactions.
