Real estate transaction laws Punjab 2024 have introduced stringent measures to recover a 5 percent penalty from immovable property purchases made through non-banking transactions under the Income Tax Ordinance 2001.
Enforcement of Real estate transaction laws Punjab 2024
The Board of Revenue Punjab has written a letter to the Registrar Cooperative Societies, Punjab, Director General Punjab Land Records Authority, District Registrars, and Deputy Commissioners in Punjab. The letter outlines compliance requirements under Section 75A of the Income Tax Ordinance 2001, read with Entry No. 21 of Chapter X.
According to the letter, a 5 percent penalty will be charged for property purchases through non-banking transactions if the fair market value of the immovable property exceeds PKR 5 million or if other assets surpass a fair market value of PKR 1 million.
Non-Recovery Concerns and Compliance Directives
During a pre-PAC meeting led by a Senior Member of the Board of Revenue Punjab, it was observed that sub-registrars, assistant directors of Land Records, and transferring officers acting as withholding agents had not collected the penalty on non-banking transactions.
The authorities expressed displeasure over the non-recovery of penalties and directed all field formations to collect the requisite penalties. The enforcement of real estate transaction laws Punjab 2024 is now a priority for the Punjab government.
Penalty Collection Responsibility Clarified
The Board of Revenue Punjab has instructed all sub-registrars, assistant directors of Land Records, and transferring or attesting officers under respective jurisdictions to collect penalties as per the law. Failure to collect the penalties on non-banking transactions will hold the responsible transferring or attesting officer accountable. This step reinforces the government’s commitment to implementing real estate transaction laws Punjab 2024 effectively.
The Federal Board of Revenue (FBR) has updated tax conditions for overseas Pakistanis engaging in property transactions for 2024. To qualify for filer tax rates, they must now secure approval from the Commissioner Inland Revenue (FBR) verifying non-resident status. The update clarifies withholding tax challan procedures under Sections 236C and 236K of the Income Tax Ordinance, ensuring compliance for overseas Pakistanis buying or selling immovable property in Pakistan.
