FBR to Ban Property Transactions by Those With Undeclared Income and Assets

The Federal Board of Revenue (FBR) is set to tighten its grip on real estate transactions carried out through undeclared income.    FBR chairman infomred the sub-committee of National Assembly Standing Committee on Finance and Revenue that under new regulations purchase of real estate or property woth Rs. 10 million or above would be banned in case the income isn’t declared.   The chairman said that to purchase property worth Rs. 10 million or above, the funds should be declared in the income tax returns.    The chairman said that 97 percent property transactions in the country are below Rs. 10 million and the new regulations would only the remaining high value transactions.   He further said that a taxpayer who has declared income of Rs. 130 million will be able to purchase one property and to purchase more properties, the declared income will have to be enhanced. The chairman said that the regulations are aimed at non-filers and people who possess undeclared funds. He was of the opinion that currently most of the undeclared income finds its way into the real estate sector.   He informed the committee that during 2023-24, almost 94 percent of property transactions were worth less than Rs. 5 million. He also informed the committee that only 12 people in the entire country have declared assets worth Rs. 10 billion.