ISLAMABAD: The stipulation of overseas Pakistani’s being tax-filers for the purchase of properties in the country and people procuring getting properties via inheritance has been removed.
On Wednesday, the government issued a circular disclosing the stipulation on purchase/transfer of property having a value over Rs5 million by non-filers was not applicable to legal heirs procuring property via inheritance, reports Dawn.
Additionally, the condition of being a tax filer won’t be applicable on overseas Pakistan’s who are able to provide a certificate from a scheduled bank authenticating receipt of foreign exchange from abroad to Pakistan via official banking channels in 60 days prior to the registration date, recording or affirm transfer of immovable property valuing Rs 5 million.
To effectually apply these stipulations on non-filers to acquire and sell properties and vehicles, the government has introduced penalties upon domestic manufacturers of vehicles, excise and taxation department and authorities for overseeing the registration, recording or attestation of immovable properties.
A penalty of 5% of the value of the motor vehicle will be levied on a domestic manufacturer of an automobile in light of accepting any application for booking or acquisition of a domestically manufactured car by a non-filer.
Likewise, a penalty of 3% on the value of the motor vehicle will be imposed on the excise and taxation department for accepting, processing or registering any application of a domestically manufactured car or the first registration of an imported automobile by a non-filer.
And a penalty of 3% will be levied on the value of the immovable property, in case any authority accountable for registering, recording or verifying the transfer of immovable property valued over Rs5 million in case of a non-filer.
Via a revision in the Finance Act 2018, banks will share information with the Federal Board of Revenue (FBR) of individuals who withdraw cash over Rs50,000 in a day and tax deduction for filer and non-filers, totalling to Rs1 million or above during the previous calendar year.
Also, the banks have been directed to furnish a list having particular details of deposits over Rs10 million or above made during a calendar month and a list of payment by any individual against credit bills totalling Rs200,000 or more during a previous calendar month.
Moreover, a bank would need to share a list of individuals receiving a profit on debt exceeding Rs1m for filers and Rs500,000 for non-filers alongside data about tax deduction in the previous financial year.
This information will be shared on a monthly basis with the tax regulator.