Real estate deals: purchase of property only through banking channel

To document buying and selling of immovable properties, the govt. has made it mandatory for persons to purchase assets through banking channel under the Finance Bill 2019. Persons purchasing immovable property of fair market value greater than PKR 5Mn and PKR 1Mn or more in the case of any other asset, will now be required to make payment through a crossed banking instrument so that transaction can be clearly identified from one bank account to another. In case of non-compliance, the deductions in respect of depreciation and amortization in respect of such assets shall not be allowed. A penalty at the rate of 5% of the FBR value of asset is being be imposed for violation of this requirement.