Most of the owners of houses and flats falling within the jurisdiction of federal Capital are liable to file income tax returns. Sources told Business Recorder here on Tuesday that the majority of the owners of luxurious properties within the Islamabad Capital Territory (ICT) have to file their income tax returns for the Tax Year 2010.
The regional enforcement authorities are in the process of issuing notices to the non-filers of returns particularly owners of immovable property in the federal capital. Under section 114 of the Income Tax Ordinance 2001, it is mandatory for owners of different categories of immovable property to file their income tax returns.
The return has to be filed by persons who owns immovable property with a land area of 250 square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; areas in a Cantonment or the Islamabad Capital Territory.
The returns has to be filed by the persons, who owns immovable property with a land area of 500 square yards or more located in a rating area and those owing a flat having covered area of 2000 square feet or more located in a rating area.
Keeping in the said legal position, it is evident that most of the sectors of federal capital fall within the areas of section 114 for filing of their income tax returns. There are few sectors in Islamabad where the size of the houses and flats are below the sizes specified in the section 114 of the Income Tax Ordinance. However, most of the posh sectors of Islamabad have no property below the size of 250 square yards or 500 square yards or flat having covered area of 2000 square feet or more. Thus, a large number of owners of property in Islamabad are liable to file returns for which tax department has obtained data from the Capital Development Authority (CDA).