The Federal Government through Income Tax Ordinance 2001, amended on 30th June,2024 has made substantial changes to Sections 236 C (Advance Tax on Sale of immovable Property) and 236 K (Advance Tax on Purchase of immovable Property). This is the first time that a new term “Late-Filer” has been introduced as well.
The rate of tax on Sale of immovable property for Filer has been set at 3% (Consideration Amount under 50M), 3.5% (Consideration Amount Greater than 50M but less than 100M) and 4% (Consideration greater than 100M). For Late Filers, this rate has been set at 6%, 7% and 8% respective to the slabs discussed above. For Non-Filers this Tax rate is set at 10% of the consideration amount received.
The rate of tax under 236 K for purchase of immovable property is being implemented on fair market value. The rate of Tax shall be 3% (Fair market Value does not exceed 50M), 3.5% (Fair market Value exceeds 50M but is less than 100M) and 4% (Fair Market Value is greater than 100M). For Late-Filer, this rate is set at 6%, 7% and 8% as per slabs discussed. In case of Non-Filers, the Tax rate has been increased to 12%, 16% and 20% of the Fair Market Value as per slabs discussed.
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