RAWALPINDI: After the introduction of new rules for sale and purchase of property by the Federal Board of Revenue (FBR), the district administration land revenue branch stopped registration of immovable properties in Rawalpindi and no registration was done on Monday.

A senior official of the district administration said a clearance certificate from the FBR had been made mandatory for the buyer. The clause of filer and non-filer will also be required for the clearance certificate.

A five per cent tax will be paid by the filer and 20pc by the non-filer. Heavy taxes have also been imposed under withholding tax section 236C and 236K and in the light of section 7E amendments in Income Tax Ordinance 2001 through Finance Act 2023.

Under 236C, the filer has to pay three percent of the current rate and the non-filer has to pay six percent.

Under 236K, the filer has to pay three percent tax of the current rate and the non-filer has to pay ten and a half percent. Apart from this, now under 7 E, more tax has been levied in the name of Non-Objection Certificate.

The responsibility of tax collection for registration, recording and transfer of any immovable property has been placed directly on the district collector and registrar. Transactions of Rs5 million or above should be done through bank certificate and pay order and receipts must be produced for the registration of immovable properties.

Published in Dawn, Aug 1st, 2023