Imarat

13,000 notices issued to buyers of properties

KARACHI: About 13,000 notices were issued to property purchasers in Karachi since July this year, asking them to file tax returns and provide an explanation regarding their source of income.

The notices were served across the city after obtaining details of the property holdersā€™ from property registration authorities and other housing societies.

Under the Income Tax Ordinance of 2001, individuals registering, recording or attesting transfer of property are required to collect withholding tax on the amount of the transaction. It also bounds individuals to provide information of buyers who have purchased property to FBR.

The notices were issued to people who deducted the withholding tax during the time of purchase but had not filed returns.

Property owners of immovable property with a land area of 500 square yards or more or who own any flat, immovable property with a land area of 500 square yards or more, and a flat having covered area of 2000 square feet or more are liable to file returns, after the introduction of tax amnesty scheme.

Those who fail to comply with the issues served or cannot justify their source of income will face legal proceedings and may have to pay an additional 50% of the tax.

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