ISLAMABAD: The rate of advance tax on sale and purchase of immovable property has been enhanced by 100 per cent.
The tax rate has been enhanced on property transaction through Finance Act, 2022.
READ MORE: FBR explains changes in advance tax on motor vehicles
The FBR issued Income Tax Circular No. 15 of 2022/2023 to explain major amendments brought through Finance Act, 2022 to Income Tax Ordinance, 2001.
The FBR said that the rate of advance tax on sale or transfer and on purchase or transfer of immovable property has been enhanced from 1 per cent to 2 per cent.
READ MORE: Pakistan introduces automated system for withholding tax payments
Moreover, sub-section (3) of section 236C of the Income Tax Ordinance, 2001 has been omitted.
“Now advance tax on sale or transfer of immovable property will be collected under this section irrespective of holding period,” the FBR added.
READ MORE: Tax imposed on foreign payments made by exchange companies
Meanwhile, in case of purchaser of immovable property who is not appearing on the active taxpayers list, rate of tax to be collected under section 236K of the Income Tax Ordinance, 2001 will increase by two hundred and fifty (250) per cent of the rate specified in Division XVIII of Part IV of First Schedule.
Necessary change has been incorporated in rule 1 of Tenth Schedule to the Income Tax Ordinance 2001, the FBR added.
READ MORE: Minimum tax for commercial importers enhanced: FBR
