ISLAMABAD: In a significant development, the government has introduced a major condition for sellers or transferors of immovable properties.
According to sources, the sellers are now required to provide proof of tax payment under section 7E of the Income Tax Ordinance 2001 to the registration/transfer authorities.
This condition has been imposed through a new provision included in the Finance Bill 2023.
As per the introduced sub-section (2A), any person responsible for registering, recording, or attesting the transfer of immovable property cannot proceed with the registration, recording, or attestation unless the seller or transferor has fulfilled its tax liability under section 7E.
Besides, the person must also evidence of tax payment in the prescribed mode, form, and manner.
Starting from the tax year 2022, the income specified under section 7E (tax on deemed income) of the Income Tax Ordinance 2001 will be subject to tax at the rates specified in Division VIIIC of Part-I of the First Schedule.
Furthermore, a resident person will be considered to have derived income chargeable to tax under this section, equivalent to five percent of the fair market value of capital assets held in Pakistan on the last day of the tax year, excluding certain specified situations.
Source: Business Recorder
Looks like another blow to real estate markwt
This Taxation Rule is a dagger in the people’s private properties which they have Inherited from their Forefathers spread over 40 to 50 years.WHY THE FINANCE BIG WIGS DO NOT REDUCE THEIR HIGH SALARIES AND DO AWAY WITH THE MILLIONS IN PLUNDER OF TOILING PEOPLES MONEY BY WAY OF PERKS FREE G
AS ELECTRIC PETROL.THIS IS ORGANIZED ROBBERY.THE ARMY NEEDS TO LOOK INTO THIS ASPECT.
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