ISLAMABAD: The Supreme Court (SC) has indicated that the transfer of property given as Diyat (compensation) to the orphaned children or widow of a murder victim, as part of a settlement in murder cases, may be exempted from taxes.
A three-member bench headed by Justice Hashim Kakar, and comprising Justice Salahuddin Panhwar and Justice Ishtiaq Ibrahim, heard a petition on Wednesday regarding an issue arising in a criminal case related to out-of-court settlement.
Advocate Usman Sharif Khosa appeared before the court and argued that when property is transferred to the orphaned children or widow of a deceased as blood money (Diyat), taxes have to be paid.
In some cases, the tax on land transfer amounts to as much as two million rupees, which sometimes prevents settlements from being reached.
He further stated that there is a decision of the Peshawar High Court declaring that no tax should be paid on the transfer of property to the heirs of the deceased as Diyat.
Justice Ishtiaq Ibrahim remarked that they would also refer to the Peshawar High Court’s decision in this case and would include in their judgment that the transfer of property to orphaned children or the widow as Diyat would be exempted from taxes.
