LAHORE – Authorities continue to tighten noose around those evading taxes and using non-banking methods to buy assets, and in recent developments, non-banking transaction penalties have taken effect. A report shared by a local publication hinted at more trouble for property buyers and sellers in country’s most populated region Punjab, where officials announced the imposition of penalties on property transactions conducted outside of banking channels. The development comes under new directive of Income Tax Ordinance 2001, which mandates 5percent penalty on property purchases if transaction exceeds certain values. It was reported that the penalty applies to property purchases with a market value above Rs50lacs or any other assets exceeding Rsone million. Notably, the penalty will be applied if the transaction is completed through non-banking methods – like cash. The penalty other than a plethora of taxes is a new challenge facing the real estate market, as buyers and sellers must now comply with penalty provisions. The penalty will be charged during property transactions, per report. In a recent meeting, tax authorities lamented the lack of enforcement of this penalty and directed field officers to ensure penalty is collected as per the law.  The move is part of efforts to curb non-banking property transactions and ensure greater transparency in the real estate sector. Key Tax Changes for Property Transactions : More from this category Copyright ©2024. Reproduction of this website's content without express written permission from 'Daily Pakistan' is strictly prohibited.