Section 10
SEC. 10. Paragraph [h] of Section 34 of the National Internal Revenue Code is hereby amended to read as follows: “[h] The provisions of paragraph [b] of this section to the contrary notwithstanding, sales, exchanges or other dispositions of real property classified as capital assets, including pacto-de-retro sales and other forms of conditional sale, by individuals, including estates and trusts, shall be taxed at the rate of 5% based on the gross selling price or the fair market value prevailing at the time of sale, whichever is higher. “Such tax shall be in lieu of the tax imposed under Section 21 of this Code: Provided, however, That the tax liability, if any, on gains from sales or other dispositions of real property to the government or any of its political subdivisions or agencies or to government-owned or controlled corporations shall be determined either under Section 21 thereof or under this section, at the option of the taxpayer: Provided, further, That if the taxpayer elects to report such gains in accordance with the provisions of Section 43[b], the amount of the tax which shall be paid on each installment shall be the proportion of the tax herein imposed, which the installment payment received bears to the total selling price: Provided, finally, That failure on the part of the seller to pay the tax imposed herein on any gains returnable under the installment method will automatically disqualify the seller-taxpayer from paying the tax on installments and the unpaid portion of the tax shall immediately be due and demandable. The tax herein imposed shall be returned and paid in accordance with Sections 45 [c] and 50 [a] [4]. “No registration of any document transferring real property shall be effected by the Register of Deeds unless the Commissioner or his duly authorized representative has certified that such transfer has been reported and the tax herein imposed, if any, has been paid.”