ISLAMABAD -Federal Board of Revenue unleashes crackdown against bigproperty buyers.
The Federal Board of Revenue (FBR) has issued 13,000 notices to propertypurchasers in Karachi since July this year, urging them to file returns andexplain their sources of income.
As per details, the Regional Tax Office-II Karachi obtained information ofthe property holders from property registration authority and other housingsocieties. On the basis of this information, the notices were served acrossthe city.
The recent crackdown is in line with the government’s announcement, whichwarned that the current amnesty scheme would be the last chance for anyoneto document their properties by paying a one-time tax.
Section 236K of Income Tax Ordinance, 2001, holds every individualresponsible for registering, recording, or attesting transfer of anyproperty. It also bounds people to provide information about the buyer tothe FBR.
As per the sources, the notices were sent to people who had deducted thewithholding tax during the time of purchase but had not filed returns.
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Anyone who owns an immovable property “with a land area of 500 square yardsor more or own any flat, immovable property with a land area of 500 squareyards or more, and a flat having covered area of two thousand square feetor more” is liable to file returns.
Those who don’t comply or cannot justify their source of income will facelegal proceedings.
The possible penalties from FBR on the undisclosed income could be a 100percent additional amount of calculated tax. The non-compliers of noticescould face 50 percent of the tax, the source added.
