The Federal Board of Revenue (FBR) has proposed the government to enhance the rate of Advance Tax on sale or transfer of immovable properties by non-filers of income tax returns from July 1, 2023.
Sources informed ProPakistani that it is a revenue generation measure proposed for the budget (2023-24). The measure would also target non-filers who remained out of the tax net while carrying out property transactions. It depends upon the government to accept or reject the budget proposal.
The scope of sections 236 C (Advance Tax on sale or transfer of immovable Property) and 236 K (advance tax on purchase or transfer of immovable property) has been proposed to be extended to rights to acquire immovable property (files) and property acquired on an installment basis. Moreover, the rate of tax under section 236 C of the Income Tax Ordinance has been proposed to be raised to 7 percent to penalize non-filers of income tax returns.
In the last budget, the rate of advance tax on the sale or transfer and on the purchase or transfer of immovable property has been enhanced from 1 percent to 2 percent. Moreover, sub-section (3) of section 236C has been omitted. Now advance tax on the sale or transfer of immovable property will be collected under this section irrespective of the holding period.
In the case of a purchaser of immovable property who is not appearing on the active taxpayers’ list, the rate of tax to be collected under section 236K will increase by two hundred and fifty percent of the rate specified in Division XVIII of Part IV of First Schedule. Necessary change has been incorporated in Rule 1 of the Tenth Schedule of the Ordinance.
Earlier, the gain arising on the disposal of immovable property after the holding period of 4 years was exempt from tax. Now the holding period concession will separately apply which for open plots is six years, for the constructed property is four years and for flats is two years.
Further, the whole amount of gain on disposal of immovable property will be taxable at graduated rates provided in Division VIII of Part I of the First Schedule of the Income Tax Ordinance.
Government tax ka paisa apnay bajay awam par lagay. Hum youth kudh apnay baroon ko kahin gaay kay tax dea karain. Hakomat nay agar nahi apni rawish badalney, tou awam sai aur youth sai koi umeed bhe na rakha karay.
I am tax payer but no relief from government. There is no soling of bricks in my street.and I pay for cleanliness of street to sweaper.no street light.but those who do not pay tax.their street are of tough tile
It is my pakistan
Why not giving relief to filers?