ISLAMABAD: Federal Board of Revenue (FBR) has collected over Rs81 billion from sale and purchase of property transactions during tax year 2022, official documents revealed.
The official number released by the FBR revealed that the income tax collection from sale and purchase of immovable properties surged by 33 per cent to Rs81.20 billion during tax year 2022 as compared with Rs61.15 billion in the preceding year.
FBR sources said that rise in income tax collection under the head of sale and purchase of property was due to incentives give under previous government to the construction industry.
Besides, amnesty scheme from questioning the source of amount for the purchase of constructed housing units also increased the collection during the tax year under review.
They further said that revision upward in property valuation tables by the FBR also made significant contribution in the collection under this head.
The FBR collects income withholding tax on sale, purchase and transfer of immoveable properties in the country. The withholding tax collection is being made under Section 236C and Section 236K of the Income Tax Ordinance, 2001.
Tax collection under Section 236C of the Ordinance jumped up by 37 per cent to Rs16.62 billion during tax year 2022 when compared with Rs12.15 billion in the preceding tax year.
Section 236 of the Ordinance deals with advance tax on sale or transfer of immovable property.
During the tax year under review the withholding tax on sale or transfer of immovable property was one per cent of the gross amount of the consideration received. The tax rate was double for the person not appearing on the Active Taxpayers List (ATL).
Tax collection under Section 236K of the ordinance increased to by 32 per cent to Rs64.58 billion during the tax year 2022 when compared with Rs49 billion collected in the preceding fiscal year.
Under Section 236K of the Income Tax Ordinance, 2001, the FBR collects withholding tax from purchaser of immovable property.
The rate of tax to be collected under Section 236K was one per cent of the fair market value. The rate was double for persons not on the ATL.