In current income tax ordinance, 2001 witholding is the key factor to identify tax evaders and those indulge in tax evasions. Real Estate sector is still undocumented sector. There are billions of transactions occur every month whose records doesn’t exist and even not traceable.
The story begins of housing societies through plot forms, then files and finally reached at actual plot. In the first two stages agents, investors and dealers make billions of rupees which are presently untraceable. FBR has no mechanism to identify these transactions while the government should take very strictly counter measures against open files system. Secondly, in closed files system there is no advance tax collection practically.
Suggestion:
- No society is permissible issued open file.
- Advance tax collection begins from down payment
- Merger of plot files (Advance tax should be collected again to discourage this practice likewise own on vehicles)
By considering above suggestions, FBR can generate much more revenue and real estate sector also much documented and general public also saved from many frauds and scams which mostly occurred because of undocumented factors.
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