Omission of section 236W in Finance Act 2019
Omission of section 236W in Finance Act 2019: As per section 236W read with clause (c) of sub-section (4) of section 111, every person responsible for registering, recording or attesting transfer of any immovable property was required to collect tax at the rate of 3% of the difference between the FBR value of property and the value recorded by the authority registering or attesting the transfer in cases where FBR value was greater than the recorded value.
So by paying three percent on the difference, the purchaser was not required to explain the source of difference of amount between FBR value and the recorded value.
Through the Finance Act, 2019, section 236W as well as clause (c) of sub-section (4) of section 111 have been omitted.
Consequently, the purchasers are now required to explain the source of investment of property up to the FBR value of property whereas previously such purchasers were required to explain the source of investment to the extent of recorded value of property.