The Federal Board of Revenue (FBR) has mandated that property transactions must be conducted through online banking. This directive comes as citizens in Punjab face challenges related to property dealings after increased taxation and rising property values.
A new regulation under Section 75A of the Income Tax Ordinance 2001 imposes penalties for property purchases made via non-banking methods. Real estate expert Muhammad Ahsan Malik explained that buyers will face a 5% penalty if the fair market value of the property exceeds five million rupees. Similarly, a penalty will apply to non-banking transactions for other assets valued over one million rupees.
Malik referenced an official letter from the Punjab Board of Revenue. The letter was addressed to key authorities, including the Registrar Cooperative Societies, the Director General of Punjab Land Records Authority, and District Registrars.
He revealed that during a recent pre-PAC meeting, officials expressed dissatisfaction with sub-registrars and assistant directors of Land Records for failing to collect these penalties. To address this issue, the Board of Revenue has issued clear instructions. Relevant field formations must ensure compliance by collecting penalties on non-banking transactions.
Malik emphasized that transferring officers who fail to collect the penalties will be held accountable. This strict measure aims to streamline property transactions and enforce compliance with tax laws.
