Islamabad: The Federal Board of Revenue (FBR) explained several of its recently instituted requirements for buyers seeking exemption from revealing their sources of income under the Fixed Tax Scheme for the construction sector.
FBR officials explained that incentives were available for purchasers in relation to revealing their source of funds when buying from projects registered with FBR under the said scheme. They added that the first purchaser of a building or a unit of such a project did not have to explain sources of funds if full payment was made before September 30, 2022 via banking channels.
FBR also stated that it would not require revealing source of funds in case of purchasing a plot by December 31, 2020; paying the dues by the same date via banking channels; person registering as a builder with FBR; and completing construction on the bought plot by September 30, 2022.
The Fixed Tax Scheme for construction sector provides immunity from section 111 of the Income Tax Ordinance. In this regard, investors making capital investment in new construction projects in the form of money or land will not have to reveal nature or source of funds subject to specified conditions. Investors could be individuals, an association of persons, or a company.