ISLAMABAD: The government has imposed a major condition on the sellers or transferors of immovable properties to prove before the registration/transfer authorities that tax has been paid under section 7E (tax on deemed income) of the Income Tax Ordinance 2001.
The condition has been imposed under a new provision introduced through the Finance Bill 2023. The persons responsible for registering, recording or attesting transfer of any immovable property shall not register, record or attest transfer unless the seller or transferor has discharged its tax liability under section 7E of the Income Tax Ordinance 2001.
According to the sub-section (2A) introduced under the Finance Bill 2023, notwithstanding anything contained in any other law, for the time being in force, any person responsible for registering, recording or attesting transfer of any immovable property shall not register, record or attest transfer unless the seller or transferor has discharged its tax liability under section 7E and evidence to this effect has been furnished to the said person in the prescribed mode, form and manner, it added.
For tax year 2022 and onwards, a tax shall be imposed at the rates specified in Division VIIIC of Part-I of the First Schedule on the income specified under section 7E (tax on deemed income) of the Income Tax Ordinance 2001. A resident person shall be treated to have derived, as income chargeable to tax under this section, an amount equal to five percent of the fair market value of capital assets situated in Pakistan held on the last day of tax year excluding laid down situations.
Copyright Business Recorder, 2023
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