Tax on Sale of Immovable Property Reduced by FBR
Islamabad: Reduction in the rate of tax on the sale of the immovable properties has been decided recently by FBR (Federal Board of Revenue). The reduction in taxation policy on sale of the property has been made by FBR itself.
As per the tax body, they have exempted the real estate sector from paying the Capital Gains Tax on the sales of open plots after a tenure of ten years. Currently, there will be no tax imposed on the owner, if he is holding the property for more than three years. Conversely, if the owner is not able to hold the property for a longer period of time and wishes to sell it within three years of acquisition, property tax will be imposed on the property.
Constructed house or an apartment if being sold after 4 years, then it will not come within the bracket of tax and no property tax will be imposed. But if the owner wishes to sell his fully constructed apartment or the house within four years, then the owner is liable to pay PKR 5 million as property tax.
Selling a property before 4-year tenure worth PKR 50 lacs is liable to pay 5% tax on the property, whereas, PKR 1 crore worth property owner is liable to pay 10% of the tax. Similarly, a property worth PKR 1.5 crore is liable to pay 15% of the tax and a property worth PKR 2 crores is liable to pay 20% as property tax.
For the plots, if the owner holds the property for 8 years or more, no property tax will be implied on it, but if he sells the property within 8 years tenure, the tax will be automatically implied on it. After June 30, 2019, a total of 15% tax will be implied on those properties that would be sold within 10 years of ownership.
As per the officials of the FBR, to minimize money laundering in the country, people are allowed to carry USD 10,000 with them when traveling to foreign countries. Foreign Currency Declaration is also made mandatory at the airport if an individual is carrying foreign currency with him.