The Punjab government has mandated the recovery of a 5% penalty on immovable property purchases made through non-banking transactions under the Income Tax Ordinance 2001. The directive pertains to the enforcement of penalty provisions for such transactions.
In a letter issued by the Board of Revenue (BoR) Punjab to the Registrar Cooperative Societies, Punjab, the Director General of the Punjab Land Records Authority, and District Registrars and Deputy Commissioners, the requirements under Section 75A of the Income Tax Ordinance, 2001, were emphasized. According to the ordinance, a 5% penalty is applicable on the purchase of immovable properties valued over five million rupees or other assets exceeding one million rupees if transacted outside the banking system.
During a pre-PAC (Public Accounts Committee) meeting chaired by a Senior Member of the Board of Revenue, it was noted that withholding agents, including sub-registrars, assistant directors of Land Records, and transferring officers, had not been collecting the stipulated penalties. Authorities expressed dissatisfaction over the lack of compliance and instructed immediate remedial action.
The BoR letter directed all relevant field officers, including sub-registrars, assistant directors, and transferring or attesting officers, to ensure penalty collection as mandated by law. Failure to comply will hold the respective officers accountable for lapses in recovery, the letter warned.
