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Recently, the Punjab Board of Revenue instructed all sub-registrars, assistant directors of the Land Records Authority, and transferring officers to enforce penalty recovery on non-banking property transactions.
According to a real estate insider, a 5% penalty is applicable under Section 75A of the Income Tax Ordinance, 2001, for purchases made outside the banking system if the fair market value of the property exceeds Rs5 million or, in the case of other assets, Rs1 million. He noted that buyers and sellers are now grappling with this additional compliance burden.
The Punjab Revenue Board has clarified that sub-registrars, assistant directors of Land Records, and transferring or attesting officers are responsible for enforcing the penalty. Failure to do so will hold the respective officials accountable for non-compliance.
This directive aims to streamline tax enforcement and curb evasion in the real estate sector, ensuring adherence to the Income Tax Ordinance and safeguarding government revenues.
The NTC emphasized the need for a unified approach to property taxation across provinces to improve revenue generation. It referred key issues, including data sharing and harmonization of tax laws, to its executive committee for further deliberation and resolution.
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