Islamabad, Jan 28: The Federal Board of Revenue (FBR) is preparing to implement stricter regulations on real estate transactions involving undeclared income. FBR Chairman informed the sub-committee of the National Assembly Standing Committee on Finance and Revenue that under the new rules, the purchase of property worth Rs. 10 million or more will be prohibited unless the funds are declared in the buyer’s income tax returns.
The chairman clarified that the new regulations are designed to target high-value transactions, noting that 97 percent of property transactions in the country are below Rs. 10 million. According to the new framework, only those who have declared their income will be eligible to purchase properties valued above this threshold. For instance, a taxpayer who has declared an income of Rs. 130 million will be allowed to buy one property. However, to purchase additional properties, the declared income must be increased.
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This measure primarily targets non-filers and individuals with undeclared funds, who often channel their unreported income into the real estate sector. The chairman emphasized that most undeclared income currently finds its way into property transactions, and this initiative aims to curb that trend.
The chairman further revealed that in the 2023-24 period, almost 94 percent of property transactions in Pakistan were valued under Rs. 5 million, while only 12 individuals in the entire country had declared assets exceeding Rs. 10 billion.
The new regulations are expected to bring more transparency and accountability to the real estate market by ensuring that property transactions are aligned with legitimate and declared income sources.
