Can a non filer purchase a plot of worth 2.5 million rupees in islamabad?
Can anyone answer, please
Yes you can. If you are "required to file your return" and you did not then you will end up paying double advance tax which amounts to 2% of gross value of the plot. In case of filer (or on active taxpayer list), it is 1%.
Please see Section 236K on page 44 in the following tax regime of FBR.
https://www.fbr.gov.pk/withholding-tax-rates/51147/81155
Thank you for your reply. Can you please tell that other than paying double advance tax, is it the practice that FBR sends a notice to non filer to clarify that how the plot is bought and asked to file I.T return also. Do anyone knows this. These type of news were circulating on media near budget days. Can anyone tell is this all occurring in real also
Yes FBR can send notice in case they detect an "unexplained wealth" in the form of heavy bank transaction. Also, in case you buy a CDA plot then the transfer documents the actual value and FBR has the mechanism to sift through CDA records to catch the naughty boys.
To get around this, non-filers make cash transactions and buy sell in non-CDA projects.
Besides, 2.5 million (25 lakh) is not a big amount that FBR will come knocking your door.
Also, if you're overseas Pakistani then nothing to worry about, you are exempted.
Hope this answers your question.
Thank you for your reply
@Isloo1…What should be roughly the amount of plot transaction that FBR will ask the non filer about the source…
@Kashif,
I looked everywhere to find a straight answer to your question, but FBR, as usual, has made the whole thing so complex that an ordinary citizen like myself gets no clue about tax rules. So end of the day, you are a thief, no matter you pay tax or not. This is how bureaucracy works -- keep people confused, and keep them guilty-concsious !
But as a rule of thumb, any bank transaction above 2 million (20 lakh) and any property purchase of above 5 million (where advanced tax is deducted) comes in FBR radar. But they have limited resources (and commitment) to follow up all cases. So they only track those where they can extorts something to fill their own stomach.
So, plz check with some tax practitioner to get exact answer to your question. Unless someone at this forum can help us.
There are so many active and qualified members of this forum. Why mostly of them are not answering to this property related important question
I waited for some tax expert to come forward and answer the question. But it seems the forum has been deserted by experts. So let me add another 2 cents for whatever worth those are.
The concept of "Filer" and "Non-filer" has been removed and replaced with a more comprehensive treatment defined in newly added "Tenth Schedule" of Income Tax Ordinance. New definitions are "Person on Active Taxpayer's List" and "Not on ATL". Tenth Schedule prescribes the treatment as follows:
1. Applicable tax rate would be doubled (100% increase) as compared to person on ATL.
2. FBR will convene a "Provision Assessment" to impute the income of the culprit and treat this as "concealed income" under section 111. Where income tax and penalties can be levied.
3. But, if you are "not required to file tax return" (under section 114), then you have to write to the Income Tax Commissioner and provide grounds justifying why you are exempted. If the boss okays it, then you're good to go.
You have to read Tenth Schedule at least 10 times to understand the basics. But if you still can not answer the question on this thread, then you are like me.
کوئی نہ سمجھے خدا کرے کوئی
(Quote) SRO 773(1)/2020 stated that banks would be required to report customers to the FBR in case they make payment of Rs1 million or more or deposit Rs10 million or more during a month. SRO 924(1)/2020 said that all real estate agents will be liable to provide information of sale and purchase transactions and their ultimate beneficial owners to the FBR besides having to perform strong customer due diligence. (Un-Quote)
https://tribune.com.pk/story/2267407/realty-sector-panics-over-two-recent-sros
(With advance apology to Ilyas Khan Sahib, who finds any reference to Tribune as distasteful. I sincerely dug hard to find the alternative but no luck. So you'll have to live with it ma' bro.)
Respected isloo 1 & the only 1 bubba, yes it is already on the website of FBR… Your source is credible… The rest news papers have not published it yet… I am filler… 
This SRO was signed by FBR on 24th of August 2020..... At least your all times favourite tribune broke the news first..... :)
You know what... I am die hard Trumpy and after reading some of the news outlets internationally and locally... I have come to the belief they are all puppets to their respective MASTERS in each country......
BBC will only give those news in Asia which are related to rapes.....she is puppet to west
NYT will give you the news prejudiced towards Trump...... She is puppet to dems.
ARY is puppet to Janoon group( immians)....
Geo News is loyal to sharmeeli......
If you have to reach unbiased facts, you have to dig deeper and deeper and deeper bubba.....
Dearest Ilyas sb, when you'll hear my reason for sticking to Tribune, you'll laugh.
It is just that a mobile app that I use, automatically pushes news from Tribune. Other than that I have never read Tribune otherwise. I am a devout Geo News watcher! ...:)
NYT, [F]NN, Washington Post, all are anti-Trump. His only all-weather ally is Fox News, I am told.
My comments on the news/SRO. FBR is fully equipped now to snoop into you bank accounts. Earlier they had to rely on the banks to provide transaction details. But now, they have got direct online access. So much for civil liberties and privacy of information.
But Pakistanis are Pakistanis. They know how to survive in any conditons. So this time, two-thirds of the "filers" have reported income under 41000, which is below taxable limit.
(Trump will pull his 72000 dollar hairs if he hears this.)
Ma Sha Allah Ma Sha Allah… Geo News is the best channel and deserves to be on the front page of “Time Magazine” … Hafeez Ullah Niazi will make a great journalist for you In Sha Allah… “Journalism” in Geo News is as responsible as the Boston Globe did in spotlight… & Generally i would recommend you to watch PEEPLI LIVE if you have not watched it yet,