Capital Gain Tax
Capital Gain Tax (CGT) will be 10 percent on selling property within 5 years.
WHT On Selling Property
FILER (current) 0.5% (proposed) 1%
NON FILER (current) 1% (proposed) 2%
WHT (With Holding Tax) On Buying Property
FILER (current) 1% (proposed) 2%
NON FILER (current) 2% (proposed) 4%
WHT is set to DOUBLE which can fully be adjusted in your income tax returns.
Tax on Property Income
Tax on renting properties increased. “In case the gross amount of rent exceeds Rs0.2 million but does not exceed Rs0.6 million, tax at the rate of 5.0 percent will be applicable,” the Finance Bill 2016 says.
“Where the gross amount of rent exceeds Rs0.6 million but does not exceed Rs1.0 million, tax of Rs20,000 plus 10 percent of the amount exceeding Rs0.6 million will be applicable.”
For rental income between Rs1.0 million to Rs2.0 million, tax will be charged at the rate of Rs60,000 plus 15 percent of the gross amount exceeding Rs1.0 million, it added.
For rental income exceeding Rs2.0 million, tax would be charged at the rate of Rs210,000 plus 20 percent of the gross amount exceeding Rs2.0 million.
Taxation of Builders & Land Developers
There is suggestion to increase Tax on Builders & Land Developers. After discussion with ABAD, final tax is being imposed on builders/ land developers on the basis of per unit area.