July 31, 2019 (MLN): The Federal Board of Revenue (FBR) has specified tax collection measures on plot and constructed properties.
According to the details provided by FBR, 100% of the gain will be taxed on plots if the holding is up to one year, whereas 75% of the gain will be taxed if the holding period is more than 1 year but not more than 2 year. However, no tax will be levied on the gain if the holding period of plot is more than 8 years.
Regarding constructed properties, the FBR has stated that 100% of the gain will be taxed if the holding period is up to 1 year, whereas 75% of the gain will be taxed if holding period is more than 1 year and not more than 4 years. Nonetheless, no tax will be levied on the gain if constructed property is sold after 4 years.
FBR further specified the tax rates on the different amounts, i.e. 5% tax will be levied on gain of up to Rs 5. million, 10% tax will be levied on gain of more than Rs. 5 million up to Rs. 10 million, 15% tax will be levied on gain of more than Rs. 10 million up to Rs. 15 million, and 20% tax will be levied where the gain is above Rs. 15 million.
