Income Tax Act enforced

"The Income Tax (Amendment) Act, 2016" has been enforced, which has allowed purchasers/investors of immovable properties to legalise/whiten the difference between the Federal Board of Revenue (FBR) notified values of immovable properties and DC rates/registered values on payment of 3 percent tax and the source of investment would be not be investigated. Sources said the President has signed "The Income Tax (Amendment) Bill, 2016" into Act on the advice of the Prime Minister.
The Income Tax (Amendment) Bill, 2016 was passed by the National Assembly on the 30th November, 2016. The Bill was a money bill within the meanings of Article 73(2) of the Constitution, therefore, the same, upon its introduction, was transmitted to the Senate for recommendations thereon within fourteen days, as required by proviso to clause (1) of Article 73 of the Constitution. However, being a money bill, it was not required to be passed by the Senate. The bill, duly authenticated by the Speaker, was submitted to the Prime Minister for onward transmission to the President for his assent thereto under Article 75 of the Constitution. The President has given his assent to the Income Tax Amendment Bill 2016, as advised by the PM.
A tax expert said that under the Income Tax (Amendment) Act, 2016 the differential between the FBR's prescribed tables of immovable properties and DC rates has been legalised on payment of 3 percent tax. The facility would be available to purchasers of immovable properties. According to clause 4 of the Income Tax (Amendment) Act, 2016, after section 236V, the following new section would be inserted, namely: "236W. Tax on purchase or transfer of immovable property.- (l) Every person responsible for registering or attesting transfer of any immovable property shall at the time of registering or attesting the transfer shall collect from the purchaser or transferee advance tax at the rate of three per cent (3%) of the amount computed under clause (c) of sub-section (4) of section 111.
Explaining the said Act, a tax expert added that the under Income Tax Amendment Act 2016, every person attesting or registering transfer of any immovable property has been made responsible for collection of advance tax at the rate of 3% from purchaser or transferee on the amount calculated. The difference between registered value and the value determined under section 68 shall not be considered for the purposes of section 111 ie the differential amount will not be charged as unexplained income and the amount, on which advance tax under section 236W has been paid, shall be allowed to be incorporated in books of accounts in a tangible form, the expert said.