Islamabad: The government has introduced an important condition for sellers or transferees of non-transferable properties.
According to the details, sellers will now have to provide proof of tax payment to the authorities through registration/transfer under Section 7E of the Income Tax Ordinance 2001. This condition has been implemented through a new amendment added to the Finance Bill 2023.
As per the introduced Sub-section (2A), no person responsible for registering, recording, or attesting non-transferable property can proceed with registration, recording, or attestation unless the seller or transferee has fulfilled their tax obligations under Section 7E.
Furthermore, the individual will also need to provide proof of tax payment in the prescribed mode, form, and manner. Starting from the tax year 2022, income derived from deemed income subject to tax at the rates specified in Division VIIIC of Part 1 of the First Schedule of the Income Tax Ordinance 2001 under Section 7E (tax on deemed income) will be applicable.
Moreover, consideration will be given to a resident individual who is liable to tax under this section, which is equal to five per cent of the fair market value of assets located in Pakistan on the last day of the tax year, excluding specific conditions.
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