FBR Exempts Section 7E on Real Estate Sector of Punjab
Federal Board of Revenue (FBR) exempts Section 7E on the real estate sector of Punjab, after the decision of the Lahore High Court (LHC). It is a relief to the real estate sector after section 7E is discontinued by the authority. Section 7E will not be imposed on the transactions of property like sale, purchase, and transfer.
This section was imposed on the property throughout Punjab in the budget 2023. The tax was imposed on the sale, purchase, and transfer of property, and it was calculated based on the property’s fair market value. However, now LHC has ordered a partial change in Section 7E of Tax Ordinance 2001 and the latest notice from the court exempts this section on the sale, purchase, or transfer of property on filers and non-filers. It is also important to mention, that a 1% tax was implemented on property operations, according to the market value of a residential or commercial property.
This step was taken by FBR after the orders of the Lahore High Court, All of the regions of Punjab have been exempted from this tax. Realtors from different areas of Punjab have praised this decision of LHC as this will be a step towards the betterment of the real estate sector, which has been suffering for more than 1.5 years.
Read Also: FBR Increases Property Tax Rate In Punjab.
FBR has eliminated Section 7E from the latest income tax circular received from the Commissioner of Inland Revenue. The exemption of this tax will apply to different individuals including such as residents, filers, and non-filers.
Furthermore, Overseas Pakistanis and non-residents are also exempted from the ax under Section 7E. This decision will be implemented until an automated system is developed to deal with the property transfer, sales, and purchases. As mentioned above, this ruling of Lahore High Court will be implemented on all the districts of Punjab from Attock to Rahim Yar Khan and more.
Stay tuned to Manahil Estate for more breaking news in the real estate sector!
