The Federal Board of Revenue (FBR) is lawfully collecting detailed information about property buyers and sellers to match wealth declarations, detect under-reported income, and broaden Pakistan’s tax base.
Under the Income Tax Rules, 2002, as amended up to November 24, 2023, property registrars and authorities responsible for registration or attestation of property transfers are required to submit monthly statements to the FBR.
🏠 Why Does FBR Collect Property Transaction Data?
According to tax officials, property transactions are a key indicator of financial capacity. The data enables FBR to:
• Cross-check wealth statements filed with income tax returns
• Identify undeclared assets
• Detect non-filers involved in real estate transactions
• Strengthen risk-based audits and profiling
Who Must Submit Property Transaction Statements?
Every person or authority responsible for registering or attesting the transfer or right to use immovable property must file a monthly statement with FBR.
This requirement applies only to urban-area properties that meet specific size or use criteria.
📐 Which Property Transactions Are Reportable?
A monthly statement is mandatory if the immovable property is located in an urban area and falls under any of the following categories:
✅ Covered Properties
• Residential plots measuring 500 square yards or one kanal, whichever is less
• Residential flats with a covered area of 1,500 square feet or more
• Commercial properties of any size
🗂️ What Information Is Shared with FBR?
Each monthly statement must include the following details of both buyer and seller:
🔍 Mandatory Information Fields
1. Name and address of the buyer
2. NTN or CNIC of the buyer
3. Name of the seller
4. Address of the seller
5. NTN or CNIC of the seller
6. Complete particulars and location of the property
7. Value of the property as per registered deed
8. Date of registration or attestation
This information is electronically compiled and used for verification against declared assets and income.
📍 What Is Considered an “Urban Area”?
For the purpose of reporting, FBR defines urban area as property located within:
• The Islamabad Capital Territory
• Limits of a cantonment board
• Jurisdiction of a municipal body
• Karachi: up to 40 km from outer municipal or cantonment limits
• Lahore & Faisalabad: up to 30 km
• Other cities: up to 10 km
• Areas defined under the Urban Immovable Property Tax Act, 1958
• Any other area notified by FBR through the official gazette
📅 Monthly Reporting Deadline
The FBR has clarified that:
Statements must be furnished on or before the 10th of each month covering property transactions registered or attested during the preceding month.
Non-submission or late submission may expose the reporting authority to penalties under applicable tax laws.
⚠️ What This Means for Buyers and Sellers
If a property transaction is not reflected in a taxpayer’s wealth statement, it may result in:
• Automated discrepancy notices
• Demand for explanation of funds
• Amendments to declared assets
• Audit or enforcement proceedings
Tax experts advise buyers and sellers to ensure that property values and ownership details are accurately declared in their tax returns.
🧾 Key Takeaway
With monthly reporting by property registrars and strict urban-area coverage, real estate transactions are firmly within FBR’s monitoring framework. Transparency in property declarations is no longer optional—it is essential for compliance and peace of mind.
Disclaimer: This article is published for general informational purposes only and does not constitute legal, tax, or professional advice. Although the information is based on applicable provisions of the Income Tax Rules, 2002 (as amended up to November 24, 2023), laws and interpretations may change. Readers are advised to consult official notifications issued by the Federal Board of Revenue (FBR) or seek professional advice before making any property or tax-related decisions. The publisher shall not be liable for any loss or damage arising from reliance on this information.