Islamabad: The Federal Board of Revenue (FBR) has issued orders with regard to the areas where the valuation tables have not been revised – a news source reported.
Withholding tax in these areas will be collected on the basis of the rates implemented by the deputy collector (DC). This practice is in line with FBR orders to streamline the transfer or sale process of immovable property.
The federal institution has also issued relevant instructions to the provincial departments concerned. Moreover, it has asked to implement the valuation table only in those areas where fair market value has been calculated.
Section 236C of the Income Tax Ordinance of 2001 makes it mandatory for an individual to pay withholding tax on sale or transfer of immovable property. This taxable amount is calculated as per the fair market value of locality where the property is situated.
For filers, the withholding tax is one percent, whereas the amount is two percent for non-filers.