An important new law and requirement placed by the government on anybody wishing to sell or transfer real estate is a game-changer. It has been reported that sellers must now give evidence of tax payment to the registration/transfer authorities in accordance with section 7E of the Income Tax Ordinance 2001.
A new section of the Finance Bill 2023 imposes this stipulation. Unless the seller or transferor has paid any taxes owed under Section 7E, the registering, recording, or certifying official responsible for the transaction is prohibited from continuing with the registration, recording, or attestation.
FBR form for Immovable property tax payment a/c to law also specified
Additionally, the individual must provide proof of tax payment in the appropriate format according to the new law. Section 7E (tax on considered income) of the Income Tax Ordinance 2001 states that beginning with the 2022 tax year, the income listed in that section will be subject to tax at the rates outlined in Division VIIIC of Part-I of the First Schedule.
In addition, a resident is deemed to have earned income subject to taxation under this subsection if the value of their capital assets located in Pakistan as of the last day of the tax year exceeds five percent of the fair market value of those assets (subject to certain exceptions).
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