Punjab Government to Impose 5% Penalty on Non-Banking Property Transactions
The Punjab government has announced a decision to impose a 5% penalty on immovable property purchases made through non-banking transactions under the Income Tax Ordinance 2001. This penalty applies to property transactions where the fair market value exceeds five million rupees, or for other assets worth more than one million rupees.
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The Board of Revenue, Punjab has issued a letter addressed to the Registrar Cooperative Societies, Director General of Punjab Land Records Authority, District Registrars, and Deputy Commissioners in the province, outlining the enforcement of this penalty under Section 75A of the Income Tax Ordinance, 2001.
The letter notes that during a pre-PAC meeting, it was observed that sub-registrars, assistant directors of Land Records, and transferring officers had not been collecting the penalty on non-banking property transactions. Authorities expressed their dissatisfaction with this oversight and directed the field formations to begin enforcing the penalty collection immediately.
The Board of Revenue’s letter further emphasizes that the concerned transferring/attesting officers will be held responsible for any failure to collect the penalty in accordance with the law. Instructions have been sent to all officers working under relevant jurisdictions to ensure compliance.
