Tax rates on immovable properties for 2021-2022

Tax rates on immovable properties for 2021-2022

The Federal Board of Revenue (FBR) has issued updated rates of withholding tax on sale and purchase of immovable properties.

The FBR collects withholding income tax under Section 236C and 236K of Income Tax Ordinance, 2001.

WITHHOLDING TAX CARD 2021-2022

Tax rates under Section 236C of Income Tax Ordinance, 2001:

The withholding tax shall be one per cent to be paid by seller of immovable property. The tax rate shall be increased by 100 per cent i.e. 2% in case person is not on the Active Taxpayers List (ATL).

Every person registering, recording or attesting or transfer including local authorities, housing authorities, housing society co-operative society and registrar or properties shall collect the tax on behalf of the FBR from seller of immovable property.

It will be minimum Tax if property is acquired and disposed off within the same tax year; otherwise adjustable. Advance tax, under this section, is not be collected if the immovable property is held for a period exceeding four years.

Tax rates under Section 236K of the Income Tax Ordinance, 2001:

236K(1): A purchaser of property shall pay one per cent of the transaction made on the basis of fair market value. The tax rate shall be 2 per cent of the fair market value in case person is not on the ATL.

Every person registering, recording or attesting or transfer including local authorities, housing authorities, Housing Society, co-operative society and registrar or properties shall collect the tax on behalf of the FBR from the purchaser of the immovable property.

236K(3) Advance Tax on payment of installment in respect of purchase of allotment of immovable property where transfer is to be effected after making payment of all installments: the tax rate shall be one per cent to be paid by purchaser of immovable property. The rate shall be 2 per cent of the fair market value in case person is not on the ATL.

Any person responsible for collection of payment in installment shall collect the tax from the purchaser or allottee of the immovable property.

Leave a Reply

You have to agree to the comment policy.