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Muhammad Sha..
( 12 posts )

[9 Answers]
Can a non filer purchase a plot of worth 2.5 million rupees in islamabad?

    14 days ago In General Advice
    Post Answer
    Muhammad Sha..
    (12 posts)
    Can anyone answer, please
      13 days ago 

      Isloo1
      (801 posts)
      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
        13 days ago 

        Muhammad Sha..
        (12 posts)
        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
          12 days ago 

          Isloo1
          (801 posts)
          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.

            12 days ago 

            Muhammad Sha..
            (12 posts)
            Thank you for your reply
              12 days ago 

              Kashif Ehsan
              (58 posts)
              @Isloo1...What should be roughly the amount of plot transaction that FBR will ask the non filer about the source...
                12 days ago 

                Isloo1
                (801 posts)
                @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.


                  10 days ago 

                  Muhammad Sha..
                  (12 posts)
                  There are so many active and qualified members of this forum. Why mostly of them are not answering to this property related important question
                    7 days ago 

                    Isloo1
                    (801 posts)
                    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
                      4 days ago 

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