Islamabad: FBR has announced the imposition of penalties on real estate cash transactions. Efforts are being made to regulate the property industry in Pakistan and increase tax collection.
According to the details, the Federal Board of Revenue has said that cash is widely used for real estate transactions, and they plan to impose strict penalties for better monitoring.
According to the amendment made in Income Tax Ordinance 2001, section 75A, people buying property or any asset exceeding 50 lac can do the transaction through a bank. Moreover, the property price will be determined by the provincial authority or board of the city.
Non-compliance with the amendment clause can lead the real estate investor to serious consequences. For instance, the buyer can face a penalty of up to 5% of the real estate value.
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