FBR collecting data on housing schemes, plazas

LAHORE: Following in the footsteps of National Accountability Bureau (NAB), Federal Board of Revenue (FBR) has also started collection of data regarding housing societies, highrises and commercial plazas directly from Lahore Development Authority (LDA).

Sources in LDA revealed that the officers of FBR had approached LDA’s Town Planning and Metropolitan Planning wings to collect data of all housing societies, commercial plazas as well as highrises in the provincial metropolis.

Sources said the FBR had directed its Lahore’s Large Taxpayer Unit (LTU) to check non-payment of capital value tax (CVT) on buying and selling of property by housing/development societies as well as income tax on rental buildings.

Sources said the CVT was payable on the acquisition of immovable property and was levied on its value as recorded in mutation deed, registered deed, or power of attorney. The recorded value is mainly based on the valuation rates fixed by provincial governments for the purpose of collection of stamp duty.

Sources maintained that the law had also made it mandatory for every individual registering or attesting the transfer of immovable property to furnish information on names, addresses and National Tax Numbers (NTNs) of the sellers and buyers besides complete description of the property and value, for which, the property is transferred.

Through this measure, transactions are being regularly reported to the department for building a data bank. LDA sources said the housing societies had to take permission from the LDA for sale/purchase of the immovable property and it was easy to take complete data of buyers and sellers from LDA to ensure collection of CVT.

Requesting anonymity, a senior officer of FBR sitting at the office of a senior LDA officer said his team was also collecting data of rental buildings as many people didn’t show their complete rental income in their income tax returns and the department was confirming those details from LDA’s Town Planning and Commercialisation Wing.

“Tax returns of many builders showed that only a few floors of their commercial plazas were rented out and the rest were still vacant,” he said adding the FBR was verifying their claim. “We are collecting Town-wise data of Lahore and so far we have gathered details of all highrise and commercial plazas/buildings at Gulberg, Allama Iqbal Town, Johar Town, Garden Town and adjoining areas,” the officer said.

To a question, he said that Lahore Development Authority was cooperating with the FBR by providing all the required data. He concluded that once the data collection was completed, physical verification of properties would be started.