FBR takes action against non-compliant return filers owned immovable properties

FBR takes action against non-compliant return filers owned immovable properties

ISLAMABAD: Federal Board of Revenue (FBR) shall take penal action against persons who owned immovable property and remained non-compliant with filing of income tax returns.

Officials at the FBR said that date for filing income tax returns had expired on February 28, 2020. However, individuals and companies still can file their returns by paying penal amount besides late filing payment to appear on Active Taxpayers List (ATL) 2019.

The officials said that tax offices would scrutinize cases of persons who owned immovable properties during tax year 2019 i.e. July 01, 2018 to June 30, 2019.

They said that as per Section 114 of Income Tax Ordinance, 2001 every individual requires to file annual income tax returns, who owns immovable property with a land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government Laws in the provinces; or areas in a Cantonment; or in Islamabad Capital Territory.

Besides, those individuals also require to file annual returns, who own immovable properties with a land area of five hundred square yards or more located in a rating area.

Further person, who owns flat, having covered area of two thousand square feet or more located in a rating area.

The FBR officials said that reportedly the real estate sector of the economy was known to be parking area for black money and money laundering. They said that the FBR had already launched aggressive drive to eliminate incidence of black money.

They said that persons who filed their income tax returns for tax year 2018 but not filed their returns for tax year 2019 and purchase immovable properties during tax year 2019 would be screened.

The tax authorities have obtained record of sales and purchase information from provincial registrars of immovable properties.

They said that those persons, who concealed their money used for purchase of immovable properties, would face action.