The Federal Government through Income Tax Ordinance 2001, amended on 30th June,2024 has considerably increased the tax rate on Capital Gain through sale/Disposal of immovable property.
What is Capital Gain Tax? Under Income Tax Laws, The authorities can collect Taxes under section 236C and 236K, but Capital Gain under section 37(1A) is payable by seller himself. It is basically a Tax on the Difference between Sale and Purchase Price of a Property.
Assets Acquired before 30th June,2024 will be taxed as per earlier slab system based on holding period of the property. This had given relief to actual buyers of the property and had reduced the speculation that prevailed in the industry. Tax rate as per holding period lowered ever year to reach 0% by the end of 6th year for open plots, 4th year for Constructed property and 2 years for Apartment buyers.
Now Rate of tax for Buyers falling in Active Tax Payer List; who have purchased properties after 30th June,2024 will taxed at the rate of 15%, Irrespective of holding period or nature of Property involved. For Non-Filers, they shall be taxed at the rate specified under normal Tax regime, with 15% being the lowest rate applicable.
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