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Pakistan property tax 2016

Pakistan property tax 2016

Property taxes in Pakistan were amended in the annual budget 2016-17. These amendments and property taxes were then passed by the parliament. But real estate stakeholders rejected the new amendments. The government, FBR and real estate stakeholders decided to negotiate and finalize the property taxes in Pakistan. After weeks of discussion between government / FBR and real estate representatives, issues of property valuation and property taxes have been finalized as mutual consensus has been reached. The new amendments have been passed through Presidential Ordinance by President of Pakistan Mamnoon Hussain. So the stalled real estate activities and registry of properties will resume according to the new amendments from Monday 1 August 2016. According to the new Pakistan property tax amendments:

Finance Act 2016-17 | Property tax rates in Pakistan
FBR will determine the real estate prices | 2-10 times increase in property rates

In Pakistan rates of immovable properties were decided by the commissioner and property taxes were subjected according to the DC Rates. Now according to Finance Act 2016 it has been changed. Now properties will be evaluated by Federal Board of Revenue, FBR. Now all property taxes will be subjected to new property rates set by FBR. All parties agreed to hike 2-10 times the property rates from current DC Rates. The parties further agreed to bring rates closer to fair market value in few years. Stamp Duty (SD), Capital Value Tax (CVT), Withholding TAX (WHT) & Capital Gain Tax (CGT) will be calculated according to new property value set by FBR.

(Stamp Duty (SD) and Capital Value Tax (CVT) is paid only by the purchaser of immovable property at the time of registry – These taxes are collected by the provincial governments and have little variation).

Withholding tax (WHT)

WHT THRESHOLD

The government / FBR has increased the withholding tax threshold. According to new taxes, withholding tax (WHT) will be applicable on properties worth 4 million rupees or more.

WHT FOR SELLERS OF IMMOVABLE PROPERTY

1% WHT on sale of property for filers

2% WHT on sale of property for non-filers

0% WHT on sale of properties after 5 years of purchase

WHT FOR BUYERS OF IMMOVABLE PROPERTY

2% WHT on purchase of property for filers

4% WHT on purchase of property for non-filers

Capital Gain Tax (CGT)

CGT ON PROPERTY TRANSACTIONS BEFORE I JULY 2016

For past transactions, 5% CGT is applicable on all properties purchased before 1 July 2016 and sold out within 3 years.

CGT ON PROPERTY TRANSACTIONS AFTER 1 JULY 2016

10% CGT on sale of properties within 1 year of purchase

7.5% CGT on sale of properties within 2 years of purchase

5% CGT on sale of properties within 3 years of purchase

0% CGT on sale of properties after 3 years of holding period

0% CGT to be paid by the relatives who were issued plots of the Martyrs / Shuhadas

50% tax relaxation for the government employees

CGT CALCULATOR

Profit on sale of immovable property = Capital Gain

Capital Gain = Price of property at the time of sale – Price of property at the time of purchase

Capital Gain on property sold for 100 Lac with purchase value 20 Lac (Purchase value as per DC Rates & Sold Value as per FBR or new rates)

Capital Gain = 100-20 = 80 Lac Profit

Tax on property profit = Capital Gain Tax = CGT

According to new CGT calculations | On profit of 80 Lac

10% CGT on sale of property within 1 year of purchase = 8 Lac

7.5% CGT on sale of property within 2 year of purchase = 6 Lac

5% CGT on sale of property within 3 year of purchase = 4 Lac

0% CGT on sale of property after year of purchase = 0

(Property price is not what the market value is but the price determined by FBR. At the moment FBR will start taxing real estate transactions according to 35-50% of the fair value of property – But in future like 3-4 years time, all taxes will be collected according to the original value of the property AKA FAIR MARKET VALUE or the price on which property is being sold)

Tax on rental income

According to Pakistan real estate tax 2016, no tax is applicable on rental income if the total amount is less than Rs 200.000 per year and owner has no other income source than the rental income. The rental income of Rs 200,000 or above is to be taxed. Tax slab on rental income is:

Annual rental income 2-6 Lac = 5% of the gross amount

Annual rental 6-10 Lac = Rs 20,000 plus 10% of the gross amount

Annual rental 10-20 Lac = Rs 60,000 plus 15% of the gross amount

Annual rental above 20 Lac = Rs 210,000 plus 20% of the gross amount

Tax on incomes of builders & developers

According to new property tax law in Pakistan, incomes of developers is subject to taxation. Taxes will be collected from builders according to the rates fixed for different cities. According to new rates, builders have to pay per foot rate for commercial and residential property according to different cities.

Winners and losers of new property taxes
Real estate agents and investors are at disadvantage

Due to the new property taxes, started from 1 July 2016, real estate activities have stalled, as this has reduced the day trading in real estate sector. Even sure deals have been cancelled and people are reluctant to sell or buy properties. Due to high CGT on selling the properties within 1 year of purchase, people will hold the properties for longer time period and that will limit the real estate transactions. This will severely affect the income of real estate agents who thrive on high property transactions. Similarly, investors are withdrawing their investments as no more juice is left in the real estate sector.

Genuine home buyers are at advantage

Due to the new property taxes, property prices are decreasing in many areas, especially where empty plots are in abundance and speculation is high. According to many experts, investors are withdrawing their investments to invest in more promising sectors like Pakistan Stock Exchange, which is one of the top 10 best performing stock exchanges of the world. Due to this we will see sharp decrease in property prices which is very good for real home buyers. Genuine buyers will be able to afford properties due to low prices.

Effects of new property taxes on Pakistan real estate sector

There are both positive and negative effects on the real estate sector due to the recent changes in property tax system. On negative side, real estate sector will see reduced transactions as investments will move out to other sectors. According to one realtor of DHA Lahore, file transfer has declined since July 1, 2016. Before the new evaluation system, on average 100 files were transferred in DHA Lahore on daily basis. On positive side, black-money will be checked and real estate sector will properly contribute in the national revenue. Another plus of new property taxes is the relief for general public, as properties will be more affordable in the near future.

Pakistan property market after new taxes

Until now what we have seen in the real estate market is the abnormal trends. Property prices have increased by 500% since 2009.  Due to the new property taxes, property prices will first crash, then stagnant and finally we will see gradual price rise. This trend is in fact good for real estate sector as we will not see another property bubble.  Pakistan property crash of 2005 was the worst nightmare for the investors, when many lost more than 50% of their investments. Property boom and bust will soon be a history in Pakistan as real estate sector has entered in new era of stability.

For investor there are still very attractive investments. In Pakistan many real estate developers offer residential and commercial projects on installments. These real estate developments are great for property investment due to two major reasons. Firstly, buyers don’t have to pay the total amount but in installments, so loss is minimum even if prices crash. Secondly, due to depreciating Pakistani Rupee, buyer will pay less but property worth will be more after the completion of installments duration. Therefore, real estate projects on installments are still the best option for property investment.

Recommended:
Taxes to be paid by property buyer and seller

(490) Comments

  1. Aoa, my friend want to bay 2 plot files, one in palm city gujranwala, price is 18 laks, and second one in dha gujranwala, price is 25 laks. Pls guide us how much he will pay as taxes? Is there any anually tax for property holders? Or its only on the time of bay and purchase? Waiting for kind guidance.

    Reply
  2. muhammad sheraz

    on   said 

    I want to get a 10 marla building for commercial use how much property tax I have to pay and when to be paid if I get it on April 2017

    Reply
    • Muhammad Sheraz
      You have to pay 8% tax for registry of property if you are tax payer
      and 10% tax if you are non filer. This tax is according to new FBR Property Rate.

      You will have to pay taxes when you will register property on your name.

      Reply
  3. Farooq

    on   said 

    I want to buy an area of 55 marlas agricultural land. The price of purchase is decided as 13 lac. How much amount will be charged as tax and registry/ inteqaal purposes???
    Please reply as soon as possible

    Reply
  4. haroon

    on   said 

    I want to buy 430 sq. ft of commercial office in Zamzama. How much amount of taxes or other charges I have to pay ? Please advise.
    Best Regards,

    Reply
    • Haroon
      You have to pay two types of TAXES
      1- fore registry of property which is according to FBR RATE
      2- Other one is FBR MAP APPROVAL OR CONSTRUCTION tax
      For commercial building construction or map approval you have to pay Rs. 210 per sq ft
      So for map approval you have to pay 90,300 Rupees

      Reply
  5. Farooq

    on   said 

    Dear Admin,

    After the registry of plot,how much time it will take to enter the record in Punjab land record portal or database.

    Thanks

    Reply
  6. Rasheed

    on   said 

    I would like to buy flat situated at mail Shahra-e-faisal opposite to airport police station which falls under revenue land of mukhtiarkar “Address Falaknaz Survey No. 185 Deh Safooran Opposite Airport Police Station” and I wanted to know under which FBR category it falls. Because some people saying it falls under category I and some saying it falls under category III.
    please also confirm how much taxes I have to bear as a buyer?

    Reply
  7. Shamsuddin Solangi

    on   said 

    Dear Sir,
    I have purchased a plot measuring 500 sq. ft. in Hyderabad @ Rs.60,000/-. Besides, it is also stated that I am a Federal Govt. Employee and paying salaried tax vide NTN No.1361208-5 regularly. In this regard, it is requested that how much tax I have to pay to FBR on purchase / sale deed, etc. of this plot.
    Your kind and prompt reply/response will highly be appreciated, please.

    Reply
    • Shamsuddin Solangi
      You have to pay just 6% tax on purchase according to FBR property rate
      Just 1% WHT on sale of property if property price is more than 40 lac
      10% CGT if you sell within 1 year of purchase
      7.5% CGT if you sell within 2 year of purchase
      5% CGT if you sell within 3 year of purchase
      0% CGT if you sell after 3 year of purchase

      Reply
  8. Ghazanfar Ali

    on   said 

    Hi Sir..
    Mene 1 Plot Buy Kia hai …135 SQ Yards ka . In Hyderabad
    aur uski registry last time 16 june 2016 ko hui hai.
    so how much i have to pay to transfer registry on my Name ?
    rply sir

    Reply
    • Ghazanfar Ali
      You have to pay only 6% tax according to FBR Rate if property worth is less than 40 LAC
      2% more Withholding tax if you are tax payer and property price is more than 40 LAC
      OR
      4% more Withholding tax if you are not tax payer and property price is more than 40 LAC

      Reply
  9. Taimoor

    on   said 

    im buying a plot is pakistan rajput town,where d.c rate is 310000 and FBR rate is
    421000,please tell me how much tax i have to pay when the plot is of 10.50 marla thanks

    Reply
  10. Wajid Ali

    on   said 

    I have purchase a plot from Bahria Directly. Means no party involve in December 2016 of 10 Marla. Does I have to pay the tax ?

    Reply
  11. Muhammad Akram

    on   said 

    I bought some property 2 months back – the FBR rate was about 10 million. However, the actual price was much more. Now the sale agreement created states the actual price and not the FBR value. At the time the dealer told me it was ok and should not result in more taxes. But I am having my doubts now – can you please advise (I am a tax filer)

    Reply
    • Muhammad Akram
      What FBR requires is both values FBR Rate and actual price of property.
      WHY
      If you only show FBR RATE, your money will be white or taxed up to FBR RATE
      BUT IF YOU SHOW ACTUAL PRICE
      ALL of your money will be documented

      So you should show both rates actual price and FBR Rate
      You will have to pay 11 LAC as registry of property

      Reply
      • Muhammad Akram

        on   said 

        Afraid I am still a bit confused. Do you mean to say that the WHT is not on 2% of FBR rate but on the actual property transaction price?

        Reply
  12. Asma Ali

    on   said 

    My father is planning to buy a plot in DHA Phase-1, the sector is outside capitol territory but i think laws of transaction etc will be of islamabad applicable on this sector (Sector F DHA Phase 1 Islamabad)
    Cost of land is around 10.5 to 12 million, my father is a retired from armed forces but he is not a tax-filer. Currently we have a flat in Askari. So can some one calculate all taxes he will have to pay?
    Is it good time to buy property in this region?
    another option is buying a plot in Bahria Phase 8, whose cost is around 6 million
    SO anyone plz let me know what taxes we will have to pay and how much

    Reply
    • Asma Ali
      Both areas are best in Islamabad for living and investment purpose
      But Bahria is much better than DHA
      Your father as buyer will pay 10% taxes as registry fee. As he is not a filer.

      Reply
        • Asma Ali

          FOR BAHRIA TOWN PHASE 8

          Bahria Town Phase 8 FBR Per Marla Rate is 2.25 LAC.

          Two Cases

          CASE 1

          If you buy 10 Marla Plot Total Price according to FBR is 22.5 LAC
          In this case you have to pay just 6% taxes according to FBR Rates for registry as there is no Withholding Tax (WHT) on properties worth less than 4 million.
          So total Tax you have to pay in this case = 1.35 LAC

          CASE 2

          If you buy 1 KANAL Plot Total Price according to FBR is 45 LAC
          In this case you have to pay just 10% taxes according to FBR Rates for registry as there is you have to pay extra 4% Withholding Tax (WHT) on properties worth more than 4 million.
          So total Tax you have to pay in this case = 4.5 LAC

          FOR DHA PHASE 1:

          FBR RATE IN DHA PHASE 1 ISLAMABAD = 5.5 LAC PER MARLA
          1 KANAL PLOT PRICE ACCORDING TO FBR IS 1.1 CRORE
          Your father has to pay 11 LAC as taxes for registry of property.

          NOTE:

          You have to pay taxes according to FBR Rates not according to property value

          Reply
          • Asma Ali

            on   said 

            thanks Ghar47, for ur detailed reply
            we are purchasing 10 marlas in both cases (either DHA or Bahria)
            so if i have understiid correctly,
            1. Bahria Plot 10 marla FBR Rate 2.25 million (market Value 6 million) so tax will be 6% of FBR rate (2.25 x0.06=1.35 lacs)
            2. DHA plot 10 marla FBR Rate 5.55 million (market price 11 million) so tax will be 10% of FBR rate (11×0.07=7.7 lacs)

            and he is not a tax-filer so after paying these taxes include those 3% additional?

            and one more thing, during the sales deed we should enter both values, FBR rate and Market rate isnt it?

            Thanks for ur help

          • Asma Ali

            on   said 

            oh sorry … wrong calculation
            10 Marla DHA1 55.5 lacs x 10% = 5.55 lacs
            10 marla Bahria ph8 22.5 x 6% = 1.35 lacs

            how much construction taxes r there in both areas???

            lets say we r building double storey house with a basement then how much charges we will have to pay …

          • Asma Ali
            FOR 3 MARLA = RS. 20 PER SQ FT
            FOR 6 MARLA = RS. 40 PER SQ FT
            MAP TAX by FBR is 70 Rupee PER SQ FT FOR HOUSES BIGGER THAN 6 MARLA OR ABOVE

            For example your house covered area is 3000 sq ft
            So you have to pay 2.1 LAC to FBR for Map Aproval

      • Asma Ali

        on   said 

        but sector F is more private and well populated with decent and well educated neighbourhood like retired army officers and civil servants but Bahria Phase 8 overseas sector 3 is totally vacant now a days, in the area where we have seen the plot, only new houses r under construction by investors and hardly we see any one living there
        but both places r hardly 4-5 mins from eachother

        Reply
        • Asma Ali
          In Islamabad / Rawalpindi Bahria and DHA both are good for living
          But according to detailed analysis and especially you father being a retired PAK MILITARY OFFICER
          I would suggest to buy plot in DHA Phase 1 Islamabad.

          Reply
  13. Naheem

    on   said 

    Am an oversea Pakistani.
    My eldest brother owned a property in Pakistan but in 2014 when he was visiting Pakistan he felt ill, which he later passed away in July 2015. May Allah give him paradise.
    But as he was ill he transferred the house deeds on my mothers nephew name in May 2014 without any money being exchanged. Just as if any issues arised with the property. As the rest of our family are all over seas.
    Now my cousin who the property is named on the deeds in May 2014 has been given a Tax fine of Rs1347500.
    Can you advice if we have to pay this.
    Thanks

    Reply
      • Naheem

        on   said 

        Thank you for your reply.

        Below is what was written on the letter.

        Notice U/S 138 (1) Income Tax Ordinance, 2001

        1. Sum of Rs 1347500 which is due from your account.
        2. Case is non-compliance or non-furnishing proof of outstanding demand, the following action will be taken against you.
        a. Proceeding under section 138 (2)
        b. imposition of default surcharge under section 205 and
        c. Imposition of penalty u/s 183 of the Income Tax Ordinance 2001.
        d. Attachment of bank account u/s 140 of the income tax ordinance 2001.

        Plus this is the only letter received from tax office , nothing before this.
        Thanks

        Reply
        • Naheem
          This letter is issued as you have not paid original taxes and now there is penalty. Can original buyer show the source of income?
          If the original buyer could-not show source of income sh/e will have to pay 3% tax on difference of FBR Rate and DC Rate. As mentioned in latest property tax amnesty scheme.

          First of all just contact on the number given in letter and ask them in detail about all charges.
          Secondly if you are not satisfied then just hire a lawyer

          Reply
  14. Asif Ali

    on   said 

    Please guide my Uncle in Azad Kashmir want yo get one canal pilot in commercial area. Please guide how much tax will be deducted in A.K ??

    Reply
  15. Abdul Rehman

    on   said 

    I am a government employee. I purchased plot for 6 lakhs in Aug 2016. Now i m going to sale it. How much % gain tax i have to pay in both filler & non filler case.

    Reply
  16. Farooq

    on   said 

    I am going to buy the Property of worth 4250000 on control rates of FBR and i am a non-filer. How much total tax i will pay and seller is also a non-filler and he is selling the property after 1 years, how much he will pay.

    Reply
  17. Taqi syed

    on   said 

    AOA
    I am purchasing an agricultural land in Kharian area of 18,000,000/-. Land is located on main road. The seller is selling after 15 years. How much charges will I and the seller have to pay.

    Reply
  18. Farooq

    on   said 

    AOA Sir,

    I am going to buy the Property of worth 3750000 on control rates of FBR and i am a non filer.How much total tax i will pay and seller is also a non-filler and he is selling the property after 2 years,how much he will pay.

    Thanks

    Reply
    • Farooq
      TAXES TO BE PAID BY BUYER
      6% TAXES ON FBR RATE and no WHT as property price is less than 40 LAC
      TAXES TO BE PAID BY SELLER
      ONLY CGT – CAPITAL GAIN TAX OF 5% ON PROFIT
      NEW FBR RATE – OLD DC RATE = PROFIT
      So seller has to pay just 5% tax on profit

      Reply
  19. Hasan

    on   said 

    Salam
    Have purchased plot dha khi in april 2010 for 11 m and sold in december 2016
    for 40m according to new FBR rate , how much WHT/ CGT or any other tax to pay and when (filler)

    Reply
    • Hasan
      WHT for you is 0% as property holding period is more than 5 years (0% WHT on sale of properties after 5 years of purchase)
      CGT
      0% CGT on sale of properties after 3 years of holding period

      So you have to pay nothing

      Reply
  20. Syed Ali

    on   said 

    Assalamulaikum,

    I have rented a portion of my house in Lahore for Rs.24,000 monthly. What is the property tax to be paid on it?

    It has just been rented two months back. When will the tax be due on it?

    Best regards,

    Reply
  21. Dear Sir,
    I am non filer in income tax and a overseas Pakistani.I am going to buy the Property of 10 Marla in Bahawalpur where DC rates are 3 lac per marla.Total amount will be 30 lac.How much total expenses will come on registry including all taxes.
    Thanks
    Khan

    Reply
  22. AOA; I m a F.Govt employee and belong to Lakkimarwat, KPK. I bought a house( in Naurang) by 900000(10 marla) where DC 12-15 lac kanal.recently 12/2016.
    therefore, requested to kindly inform me to how much taxes paid by me. thanking for you in anticipation, abdullahshah

    Reply
  23. We are selling our company property including land and building in which land was purchased more than 10 years ago and building was constructed around 3 years ago . The selling price for land according to new valuation is Rs. 70M and Rs. 30M for building . Our cost price of land is Rs.10M and cost price of building is also Rs.10M ,but we have charged up to date depreciation on building at only Rs.3M up to the last income tax assessment .
    Q1. Please inform us how much we have to pay Income tax / WHT on registration of sale of this land and building ?
    Q2. Is profit on sale of building Capital gain ? , and how much? Whether this profit will be taxable again in profit and loss account?
    Q3. If the company distributes above capital gain to its shareholder , will it be again taxable ?
    whether company or shareholder will pay and how much ?

    Requesting early reply by any Income Tax consultant

    Reply
  24. AOA, I want to buy one Kanal Plot in a society in Lahore FBR value of Plot is 4400,000/-
    please guide me how much taxes, stamp duty i need to pay If I am a filer ?

    Reply
  25. Mrs. Omer

    on   said 

    Salam
    I purchased a file in dha 9 Prism worth 17,50,000 on dec 31 2014, and paid 250,000 more on possession of plot. Now am selling it for 37,00,000, how much tax i have to pay?

    Regards

    Reply
  26. Zain Kabir

    on   said 

    Salaam,

    I want to buy 10 marla plot in Lahore. What is the minimum value of land on which the taxes are applicable? Is it PKR 3 million or PKR 4 million?
    What are the different % i have to pay in taxes and otherwise?
    1. Stamp %?
    2.CVT %?
    3. Corporation tax %?
    Any other amoount i need to pay while buying a plot?

    Reply
  27. shakeel

    on   said 

    Nice page.
    Kindly mujay bata dain kay hamray pass DHA City Karachi mae 200 Sq Yds ka plot ha jo ham sale karna chahtay hain aor ya plot ham ne 2011 mae liy tha. Kia is kay sale karany hamin koi tax dena paray ga

    Reply
  28. Faiz Ahmed Imran

    on   said 

    We are selling our company property including land and building in which land was purchased more than 10 years ago and building was constructed around 3 years ago . The selling price for land according to new valuation is Rs. 70M and Rs. 30M for building . Our cost price of land is Rs.10M and cost price of building is also Rs.10M ,but we have charged up to date depreciation on building at only Rs.3M up to the last income tax assessment .
    Q1. Please inform us how much we have to pay Income tax / WHT on registration of sale of this land and building ?
    Q2. Is profit on sale of building Capital gain ? , and how much? Whether this profit will be taxable again in profit and loss account?
    Q3. If the company distributes above capital gain to its shareholder , will it be again taxable ?
    whether company or shareholder will pay and how much ?

    Requesting early reply by any Income Tax consultant .

    Reply
  29. Arif Malik

    on   said 

    Dear Admin,

    I bought a house 1 and half year ago in islamabad Zone 5 for 60 lacs and now i want to sell it for let’s say 65 Lacs. how much tax i have to pay after selling my house.

    Thanks & Best Regards

    Reply
  30. Hi Admin,
    I need your valuable on following issue.
    I have bought a plot 4.5 marla on 28-05-2016. At the time of buying plot I paid CVT & Stamp duty to the society for transfer. Now I planned for registry before construction and I am told that I have to re-pay CVT & Stamp duty. I cannot understand why I have to re-pay these taxes. Please guide me. Thanks.

    Reply
    • Ali
      Tell the society about this
      You might have received letter from FBR
      Just show this letter to society and tell them to write on behalf of you that you have paid these taxes
      First have discussion with society members

      Reply
      • Thanks for your response.
        It is the society who is asking me to repay these taxes for registry. According to them, there are two heads in government’s treasury (transfer deed & Sale deed). Previously it was submitted in transfer deed head and now it will be submitted in sale deed head. Moreover I did not received any letter from FBR. They showed me Challan forms (32-A) which society had submitted on my behalf.
        I just want to know that this logic is correct or they are making money from me. Thanks

        Reply
  31. ali raza

    on   said 

    hello dear ma janna chahtaa hoo ka society ka hisab
    society na zameen ki qimat 33,000,00 kanal bataye haa aur kaha haa 5% cvt and stamp duty haa
    ma wht janna chahtaa hoo agar hum ghar kharedaa 70 lac ka to wht kitna hoo ga jabb ka zameen ki kimat fbr ka hisab saa 33lac per kanal ha aur hum agar kanal ka ghar 70 lac ka laa to kia wht hoo gaa yaa nhi

    Reply
  32. Deepak Kumar

    on   said 

    hello sir,
    i need your suggestions as my family intends to purchase 2 flats costing 28 lacs for each in Hyderabad-Sindh,after selling our home and having our share.
    can you please quote the payable taxes, also guide me to deal all this safely by paying the minimum possible expenses regarding taxes and registry.

    Reply
    • Deepak Kumar
      You have to pay just 6% registry fee / taxes according to FBR new property rates which are less than market value of property
      You have to pay zero WHT as your property price is less than 40 Lac
      Its always better to hire some expert lawyer to do registry work for you.

      Reply
  33. sajjad taj khan

    on   said 

    Dear sir
    By profession I am banker .I have purchased a plot via registry for Rs ten lac in 2011agsinst house loan from own bank but now in 2016 I have received a notice from FBR revenue that deposit tax dues 150000 along with source of income.what evidence shold i provide to them for exemption or if any property tax lrvied on it if yes then how much i fall in KPK province.i heared that their is nl tax on such purchase of such plot kindly guide me please.

    Reply
  34. Bilal

    on   said 

    Dear Author,
    Please if you can help my question is a little out of context,
    In annual tax return i want to declare property on my name,
    Should i declare its market value in tax returns or FBR Value?
    If i declare FBR Value when i sell in future bank transaction for selling property will be much more then declared FBR Value, please sujjest.

    Regards

    Reply
    • Bilal
      You should return both values as it is required by FBR
      Reason
      If you just declare FBR value but as you have paid more according to market rate, you have trouble
      Why?
      Only that money will be considered white which has been taxed or declared and undeclared money will be considered black

      Reply
      • Bilal

        on   said 

        Dear Author,

        But i see only one coloumn where i can enter asset value, as tax return submission is now electronic i donot know where i can declare second value.

        Regards

        Reply
      • Muhammad Anwar

        on   said 

        Dear Author Ghar 47,
        i daily ready ur blog and people questions and ur answers in reply,
        my question is that u r asking that property rates will fall, but in actual, property rates are not falling, rates are rising,
        waiting for ur comments.
        Anwar

        Reply
        • Muhammad Anwar
          In few circumstances rates might be rising.
          But in most cases, like 95%, property prices are falling.
          Property prices are more falling in the areas where empty lots are more
          Property prices are falling more in the areas where property prices are sky high
          Property prices are falling in the areas where speculation and day trading was high.

          Prices are falling less in the areas where more houses on ground than empty plots, areas with low speculation etc.

          Reply
  35. Aslam

    on   said 

    Dear Author, My Father had a property at North Nazimabad Karachi (600Sq yrd)….who died recently….now we only a brother and a sister want to transfer (Inheritance transfer) it…..we had obtained a succession ctf from Khi City Court……Now how much should i pay to get the transfer at our name at the registrar office. JazakALLAH

    Reply
  36. M Asim

    on   said 

    Dear Sir
    I belong to audit department of transfer of immovable property
    what is the difference between Advance Tax, With Holding Tax and Gain Tax.

    Reply
    • A Asim
      ADVANCE TAX
      Advance tax is the tax paid in advance ( In between the financial year) in respect of the estimated income for the whole year.
      WITHHOLDING TAX
      Tax on cash withdrawal is a form of advance taxation / Withholding Tax imposed in Pakistan.
      CAPITAL GAIN TAX
      CGT is the tax on the profits. If you buy property for 1 crore and sell it on 1.5 crore. You have to pay CGT on 50 Lac.

      Reply
  37. Dear Author,
    I intend to purchase 1300sq ft flat in gulistan-e-johar amounting to 34 lac. What will be the total amount of tax i have to pay.

    Reply
  38. arslan

    on   said 

    Sir i want to purchase 9 marla plot in punjab mianwali how much amount i have to pay on registration fee and all taxes. The said price of 9 marlas are about 9 lac please tell me about registration and all taxes fees thankss

    Reply
  39. Ahmed khan

    on   said 

    Asalmu.of. alikum sir I want to buy 10 marla houes in hayatabad phase 3 in peshawar . The amount of the houes is 1 caror and 47 lac
    Kindly infromatioat me that what will be I pay the Wealth tax. Plz rply

    Reply
  40. muhmmad asif

    on   said 

    asalam alikum
    bhaijaan
    i purchase a 80 sq. yard house in surjani town a house price is 3500,000/- what i pay all taxes and stamp duties have paid
    plz help sir

    Reply
  41. Salman Ahmed

    on   said 

    Assalam-o-Alaikumm Author,

    here im again with New Confusion, now i am buying 240 Square Yard Plot in Gulshan-e-Maymar Karachi, Amounted 72 Lac, but the location is not listed in FBR Porperty Valuation Chart, now how am i suppose to calculate the Taxes i have to pay and, if i start construction of house on the same plot do i have to pay any taxes on construction too? i am constructing for living purpose, might be sold after 10 – 20 years… please let me know the exact amount i have to pay on taxes…

    Reply
    • Salman Ahmed
      In your case old DC rates will be applicable.
      Old DC rates are normally 1/5 of real market value. So in this case DC rate will be 15 Lac.
      You have to pay taxes according to 15 LAC Amount.
      For registry overall taxes will be 1 Lac approximately.

      Yes FBR has imposed new taxes on construction too.
      You have to pay approximately 70 Rupees per sq ft of covered area or area to be constructed.

      For example if you want to build 2500 sq ft you have to pay 2500×70 = 1.75 LAC as construction / map approval tax.

      FBR MAP APPROVAL RATES

      RESIDENTIAL

      House size up to 3 Marla/75 SQY = Rs. 20 per sq ft
      House size up to 4-6 Marla/100-150 SQY = Rs. 40 per sq ft
      Houses bigger than 6 Marla/150 SQY = Rs. 70 per sq ft

      COMMERCIAL

      Commercial developments = Rs. 210 per sq ft

      Reply
  42. Imran

    on   said 

    Bro I want to purchase a house in Lane 5 Rawalpindi having cost 50,00000. So I want to know what would be the Registry Cost that I have to pay as well and CVT and Stamp duty cost on 5 marla house double portion house?

    Reply
      • Who the rates could be 5-6% on purchase? as above mentioned WHT on purchase of property would be 2%(filer) and 4%(non-filer).

        Reply
        • Moiz
          When you purchase property you have to pay taxes for registry in form of CVT, Stamp Duty and Corporate taxes.
          If we calculate these taxes the sum is 5-6% depending on location.
          In addition to that
          0% WHT if property worth is less than 40 LAC according to FBR
          2% WHT for filer
          4% WHT for NON-FILER

          Reply
  43. i am purchasing a property in iqbal town, 5 marla home … what would be the total fee to transfer property to my name …

    Reply
      • Thanks for quick response. But I have following queries too:

        According to FBR Residential Rates/Marla in Allama Iqbal Town is Rs. 703,725. (LATEST – SRO673(I)2016)
        So it becomes Rs. 3,518,625 as far value of the land concerns.

        PLUS Building Value i.e. Malba which I do not exactly know at the moment. But the house is more than 25 Years Old, Double Storey and the covered area of it is 2174 sqft. And some says the value of Malba is around 30,000.

        Basically I want to know the exact
        CVT
        Stamp Duty
        Corporate Tax
        Transfer Property Tax
        WHT (if applicable – please confirm as total value is less than 4Million)
        Further the buyer is Filer for Tax and also let me know whether these taxes are applicable to DC Rates published by FBR or actual price to be paid for the house which is much higher than DC Rates.

        Reply
        • Ali
          You have to pay approximately 2 Lac as taxes as property price is less than 40 Lac
          There is big confusion at the moment as Both DC rates and FBR rates are working
          FBR will get CGT and WHT
          Whereas
          Stamp duty
          CVT
          is deducted by Provincial government according to DC rates
          Corporate tax which is normally 1% is development authority or society tax
          FEDERAL GOVERNMENT and PROVINCIAL GOVERNMENTS are working on it to have a new mechanism on which all taxes are collected according to one set of rule like either DC Rates or FBR Rates

          In near future like few months this big issue will be resolved.
          For complete information, just discuss this matter with local authority or society

          Reply
  44. madeeha

    on   said 

    Aslamo alikum
    Bhai
    I want to transfer my mother house of 10 Marl a situated in a Passco cooperative society. Pls advice me is there gift transfer is applicable for transfer of house from mother to daughter
    Also pls update me how much tax will applicable.thks

    Reply
    • Madeeha
      There are not taxes on gifted properties in Pakistan.
      But you just have to pay 5-6% registry fee according to FBR property rates which are much lower than the actual property price.

      Reply
      • madeeha

        on   said 

        Bhai
        I visited society office and asked them about gift transfer they said that u will have to pay a all taxes as per normal sale purchase transfer
        As government has now closed gift transfer
        Am very much tensioned as they provided me a huge tax amount list
        I insisted that u people are not giving me right information as there are no taxes in gift transfer
        Is it possible if u share any government document with me whish shows clearly that gift transfer is also applicable for 10 Marl a house
        Pls
        Advice me

        Reply
  45. Bilal

    on   said 

    Dear author,

    I have inherited a house from my father, i am going to transfer it from my father name to my name, how much registration charges will apply, fbr rate of property is 16 lac.

    Thanks

    Reply
  46. Assalam-o-Alaikum!

    I want to buy a residential plot of 120 sq. yard in Karachi tax category V, where per sq.yard value is PKR 1800. So, the total value of plot will be 120*1800 = 216000. But in actual the value of plot is 75 lacs. Can you give me some idea that how much taxes I will have to pay to buy this property?

    I will be thankful to you.

    Reply
      • Thanks alot for your reply.

        Now comes second question. It will help other readers also who are confused like me.

        I want to construct the same plot ground plus one. What will be the construction tax?

        If I want to sell the same property after the construction. Lets I spend 30 lacs for the construction and 5 lacs for utilities so the total cost of property will be 75+30+5 = 110 lacs.

        If I want to sale the property within 1 year how much taxes will I have to pay in terms of WHT,CGT and other taxes if I sale it for 110 lacs.

        The value from FBR for this area for constructed house is 4000 per sq. yard so the total value will be 120*4000 = 480000.

        I will be thankful to you if you can clear this point to me.

        Best Regards
        Affan Ali

        Reply
        • ALI
          FIRST PART
          You will be paying taxes according to 48000 set by FBR
          SECOND
          How to calculate CGT – TAX ON PROFIT
          FBR will raise the property valuation every year to the level that FBR rate is equal to market value of property. As now FBR rates are much less than actual property price.
          CGT = NEXT YEAR FBR RATES – CURRENT FBR RATES = PROFIT.
          So according to your profit you have to pay CGT and WHT
          If you sell property within 1 year of purchase you have to pay 10% CGT
          If sold within 2 years of purchase, will have to pay 7.5% CGT
          If sold out within 3 years of purchase, will have to pay 5% CGT
          If sold out after 3 years of purchase, no CGT
          WHT on sale of property is 1% for filer and 2% for non-filer

          Reply
          • Thanks for the clarification.

            I need your advice regarding the investment.

            Is it still good to invest like this i am thinking right now to buy a plot , then construct it and sale it? Will it be profitable to invest the money, time and effort in this business considering the current situation?

          • Thanks for the suggestion.

            But according to your many blog, the white money people can afford a property upto 1-1.5 cror. so, will this reduction in prices effect the properties below this range.

  47. YOUSUF LODHI

    on   said 

    IF SOMEONE BUYS A PLOT OF 500 YARDS AT DHA PHASE 8 KARACHI WORTH RS. 1-CRORE AS PER NEW FBR VALUE….AND…..PAY ALL TAXES APPLICABLE AS NON-FILER…. WOULD FBR STILL ASK THE BUYER FOR “SOURCE OF INCOME” ? AND IF YES, HOW AND WHEN WILL THEY ASK ?

    Reply
    • Yousaf Lodhi
      Many people told e that they have received letter to pay CGT from FBR. THIS IS IN CASE YOU SELL PROPERTY
      BUT IN CASE YOU BUY PROPERTY. You have to pay all taxes before registry of property.

      Reply
  48. Naveed

    on   said 

    Please let me know that these all property taxes including WHT & CGT will be conducted on multiple societies in Karachi such as Scheme 33 (Kaniz Fatima society, Malik society and teachers society etc. Or no tax is applicable for multiple sell and purchase in theses type of areas.

    Reply
      • Naveed

        on   said 

        Thanks for reply.
        I am a little confuse; is the documentation and registry record is held in Society Office or it is registered in KMC, KDA record. Are all Society Land/home owners records are maintained by government sectors or not. For Exemple Gulshan-e-Mamaar Society etc.

        Reply
        • Naveed
          Societies have file system
          Societies & housings schemes will transfer file after deducting all taxes according to FBR.
          In short taxes are same but societies pay it to government and collect it from residents

          Reply
      • Muhammad Anwar

        on   said 

        Sir, please let me know why plots rates are not crashing in dha2 isb, naval anchorage and jinnah garden isb.
        what is future prospects of bahria town pahse 8 rwp

        Reply
        • Muhammad Anwar
          Property prices are crashing every where
          Dealers are trying their best to artificially rise property prices. They will fail bitterly.
          Wait till December as more price fall is coming.

          Reply
  49. YOUSUF LODHI

    on   said 

    AFTER PROTEST OF ESTATE AGENTS QUITE RECENTLY, HAS THE GOVERNMENT ANNOUNCED ANY AMNESTY OR AMENDMENT IN THE NEW TAXATION LAW ??

    Reply
  50. YOUSUF LODHI

    on   said 

    DEAR AUTHOR,

    HAS THE FBR STARTED COLLECTING CAPITAL GAIN TAX ON ALL PROPERTY SOLD ACCORDING TO THEIR ESTABLISHED RULES OR NOT YET ?????

    Reply
      • YOUSUF LODHI

        on   said 

        You mentioned in one of your replies few days ago….that….FBR is preparing letters to be issued to property sellers related to payment of capital gain tax…..what did it actually mean ? Was gain tax not being collected soon after 01 July 2016 as per new FBR value due to non-issuance of official letter at that time ?

        Reply
  51. I want to sale my Plot which i booked on installment in December 2013 in WAH New City Phase 2.

    Installments are not still complete.

    How much tax i have to pay as seller?

    Reply
  52. Anonymous

    on   said 

    Dear sir,
    My father purchase 454sq ft flat on my sister name in 2015 but my father dead in 2016. Now we are selling flat. Are cgt is applicable?

    Reply
  53. Salman Ahmed

    on   said 

    Dear Sir,

    there is so much confusion on sale of my house, which i need to cleared.

    let me give you a whole scenario

    My Grandparents have gifted me a house measuring 240 Square yard (Ground + 1 ) in the North Karachi Sector 11-A, Karachi. which was bought by my Grandparents in 1998 at the price of 16 Lac, and transfer/Gifted to me in 2009. and now i am selling it at 180 Lac

    as per FBR valuation of property my Area Value is 11,000 Per Square Yard,

    now to confusion starts,

    as written in upper portion,

    WHT FOR SELLERS OF IMMOVABLE PROPERTY
    1% WHT on sale of property for filers
    2% WHT on sale of property for non-filers
    0% WHT on sale of properties after 5 years of purchase

    CGT ON PROPERTY TRANSACTIONS AFTER 1 JULY 2016
    10% CGT on sale of properties within 1 year of purchase
    7.5% CGT on sale of properties within 2 years of purchase
    5% CGT on sale of properties within 3 years of purchase
    0% CGT on sale of properties after 3 years of holding period
    0% CGT to be paid by the relatives who were issued plots of the Martyrs / Shuhadas

    according to if 0% WHT on SALE after 5 years and 0% CGT on sale after 3 years
    then i have to pay 0%,

    Please Clear these confusions

    1. What is 5% Flat Tax on properties “CGT ON PROPERTY TRANSACTIONS BEFORE I JULY 2016” do i have to pay this or not. if yes how much do i have to pay.

    2. how much WHT and CGT taxes do i have to pay as a seller

    3. where i can search in FBR official website about the WHT and CGT period written. can i have a Web link please…

    Reply
    • Salman AHmed
      You have to pay zero tax
      Withholding period is more than 5 years. so no WHT
      Property is sold more than 3 years so no CGT
      There were many links on FBR websites from where I collected the tax information.
      I will post these links but will take some time to find these links again

      Reply
      • Salman Ahmed

        on   said 

        Thanks for your Prompt Response,

        Please take your time and do let me know the links where i can see the the actual what is written on FBR Website, so i can have a proof and can fight back if someone ask me to pay something as a TAX,

        also i need to know what is 5% Flat Tax, if my property is bought back at 1998 then still do i have to pay or not…

        Reply
  54. I really appreciate your suggestion.
    And thanks to respond.Sorry to bother you but just make me clear that you said that 6% tax is paid by buyer and I’m a seller ,So I need to pay 6% tax on FV value determined by FBR or not?

    Reply
  55. Me and my mother & siblings have inherited a Property after the death of my father. We have received a decree of intiqal by judge. My mother has attested power of attorney for my siblings. Does the property have to be registered in all names? Also is there any taxes to pay like registration fee. Also siblings & mother have agreed to transfer (gift) property to me. Will there be additional taxes to pay or inheritance is exempt from taxes?

    Reply
  56. Sharjeel

    on   said 

    Dear Author
    I bought a 5 marla file in DHA City Lahore in october 2010,since then once the file rate went high in 2012 after that it went down DHA stop transfer so i am unable to sell it as in the market property agents offer 3 to 4K and rest they will pay once the transfer will open please reply the solution that in those 6 years i did not get what i was expected will DHA authority refund the money or until the case is going in NAB they will not do any thing as they are not replying on phones after robbing loads of people.

    Reply
    • Sharjeel
      There are many stories about DHA CITY LAHORE
      DHA will not pay until case is with NAB
      It is best in your interest to hold file
      Don’t sell file in panic to any real estate agent
      Wait and hope for the best

      Reply
  57. Sir
    We have a house that was inherited by our father all the hairs are agree to sale the house now in tax year 2017 , the house was originally purchased in 1974, now we are selling it.
    So please tell me what are the documents we have to made for purpose of sale?
    And what taxes we have to pay as a seller?
    Also please tell the amount of tax?
    The agreed selling price is 27lacs with the purchasing party.

    Reply
    • Shabbir
      You have to pay no CGT as property holding period is more than 3 years
      You have to pay no WHT as property price is less than 40 Lac
      You need registry documents to sell this property

      Reply
      • Thanks for your response.
        I would also want to know that our state agent told us that we have to pay 6% tax on the sale of house,Is this is true or not?
        And also tell that what is mean by advance tax?
        Is this is a tax that is apply on advance payment which we receive on confirmation of deal?

        Reply
        • Shabir
          Thats true that you have to pay 6% as taxes
          But there is nothing like advance tax
          Normally in addition to 6% taxes people have to pay Withholding tax WHT
          but as your property is worth less than 40 Lax so you have to pay no WHT

          Reply
          • Thanks for your response.
            Kindly tell me in which head the 6% tax falls and in which regard it shall be paid?
            And also tell that this 6% is charge on total sale market price of house or on FBR recommended fair market value price?
            And this 6% is fixed or charge on a slaprate and what we called it?
            Both the seller and buyer has to pay it or not?

  58. Irshad

    on   said 

    I would immensely appreciate your suggestion regarding my question below:

    I am planning to buy a residential plot possibly in I-16/2 or I-14 sector of Islamabad (minimum 5 Marla and maximum 8, whichever is better).

    Can you give me any rough idea about the taxes I have to pay (as a buyer)?
    I am working abroad and I don’t know if this is going to be a good investment.

    Looking forward to your answer.

    Reply
    • Irshad
      Both 5 & 8 Marla plot sizes are good
      I would like to say just wait for 2 weeks
      From tomorrow 24-10-2016
      REAL ESTATE AGENTS ARE ORGANIZING NATIONWIDE PROTESTS AGAINST TAXES
      They want the government to take back all taxes
      LETS FIRST SEE THE OUTCOME

      Reply
  59. Salam. Taxes, their valuations and applicability explained in the simplest way.
    My question, I had booked an apartment 4 years back, going to get possession in Nov-2016 In.sha.Allah after paying around Rs.28 lac in installments.
    I understand I will have to pay 2% stamp duty, 1% town tax, 1% Reg. fee.
    If I sell it out at Rs.30 lac within one year of date of registration of sale deed between builder and me (likely in Nov-2016), would I still pay the GCT ? as I consider that property was actually acquired when I booked it and not when sale deed would be executed, thus period comes beyond 4 years hence no CGT would perhaps be applicable. If reply is in affirmative, then how much CGT would I pay ?
    Thanks.

    Reply
    • Khan
      You have to pay 0% CGT is withholding time period is more than 3 years.
      But if you sell within 1 year of purchase you have to pay 10% CGT.
      CGT is calculated as
      NEW FBR RATE – OLD DC RATE = PROFIT
      10% TAX ON PROFIT

      But as your time period is more than 4 years so you will not pay any tax

      Reply
      • Thanks. An small clarification. CGT would be calculated on the basis of difference between old DC rates and new FBR rates (calculated to be Rs.18 lac which is even lesser than the price of purchase) and not on actual market value on which the property is first purchased and then sold out ?

        Secondly, generally speaking, for calculating applicable taxes/fees such as stamp duty, reg. fee, town tax or WHT, is it sale consideration of the property OR FBR rates on the basis of which such calculations are made ? specially where sale deed/conveyance deed specifically speaks of the price on which that property is being sold?
        Thanks.

        Reply
        • Khan
          All taxes are now calculated according to new FBR Property Rates
          For example you purchased property for 50 Lac
          But FBR rate of that property is 10 Lac
          So you have to pay taxes according to FBR rates

          Hope it clears the confusion
          If not just write down your views
          Regards

          Reply
          • Khan
            There is lot of confusion regarding this as clashes between old DC rates and new FBR Rates
            TODAY estate agents and real estate stake holders are protesting nationwide to amend property tax laws once again
            I will recommend everyone to wait for the final outcome
            The link you mentioned is correct as it shows what you have to pay as buyer and seller

  60. Matin

    on   said 

    Thank you Sir ….now I can relax as I was told that I may have to pay 10% as GST.
    It now have a wish…… and it is to meet you sometime.
    With regards and best wishes
    Matin

    Reply
  61. Matin

    on   said 

    Sorry to bother you once again
    Value of plot gifted by my son in January 2016 at. DC rate was 50 lacs
    Value when sold in May 2016 still 50 lacs …..same DC Rate
    Now from August
    FBR Rarte 1 corore – DC rate when gifted 50 lac = 50 lacs profit
    So CGT payable is 5% of 50 lac as plot was bought before 1July 2016
    Please confirm this formula correct or as per new ruling do I have to pay 10% as CGT.

    Reply
  62. Matin

    on   said 

    Sir in my question below forgot to mention that valuation of plot was 49 lacs by DHA in May 2016 at time of transfer and I paid 1% advance tax
    Is the law of 5% CVT still valid as the plot was acquired before 1July 2016
    Thanks again
    You are doing a wonderful service by answering all property related questions Please keep it up

    Reply
    • Matin
      I understand
      You have to pay CGT not CVT
      Capital value tax CVT is paid when you buy property
      Capital gain tax CGT is paid as profit when you sell property
      so you have to pay CGT
      Yes
      You have to pay 5% CGT on the rates fixed by FBR not on the actual sale price
      So
      FBR RATES NOW – OLD DC RATE = PROFIT

      Reply
  63. Matin

    on   said 

    My son had a plot in DHA for last ten years and gifted it to me in JANUARY 2016
    In MAY 2016 I sold the plot for 1 corore after keeping for four months
    How much CVT do I have to pay in the tax return that I have to file by end of month
    Many thanks

    Reply
  64. Javed

    on   said 

    I bought a plot is in Feb 2016 for 30 lacs and I sold it in May 2016 for 60 lacs.
    What is the CGT payable.
    Thanks for an early reply

    Reply
  65. I purchased a plot on sharing basis (2 equal share holder) in june 2016. It declared price was 1380000. What tax I have to pay more in addition I payed transfer fee 02% CVT (25300), 3% stamp duty (37950), Transfer fee (26000). How much tax I have to pay more and is there any adjustable tax which I had paid already?

    Reply
  66. DANIAL SHAH

    on   said 

    i havent got my property tax letter, i live in bahria town lahore i have a 8 marla house ALHAMDULILAH., please any one can guide me ?

    JAZAK’ALLAH

    Reply
  67. Tanveer Iqbal

    on   said 

    I purchased the flat of 450 sqr foot from builder, now i need to get registry. this is first registry. how much amount i need to pay and how much the builder will pay for registration. as i already paid Development charges lease is also include in it.
    after revision of new tax rates which taxes i need to pay and which one need to pay by builder.

    Reply

    Reply
  68. Salman Ahmed

    on   said 

    Dear Sir,

    I Like to sale my House 240 Square Yard, in North Karachi, which is bought at 1996, do i have to pay any Tax / CGT / WHT? as in upper portion i have saw this

    WHT FOR SELLERS OF IMMOVABLE PROPERTY
    1% WHT on sale of property for filers
    2% WHT on sale of property for non-filers
    0% WHT on sale of properties after 5 years of purchase

    CGT ON PROPERTY TRANSACTIONS AFTER 1 JULY 2016
    10% CGT on sale of properties within 1 year of purchase
    7.5% CGT on sale of properties within 2 years of purchase
    5% CGT on sale of properties within 3 years of purchase
    0% CGT on sale of properties after 3 years of holding period
    0% CGT to be paid by the relatives who were issued plots of the Martyrs / Shuhadas

    if 0% WHT on SALE after 5 years i think i dont have to pay anything. also no CGT
    please guide me, also can you give me link where i can check what is actual value of my House according to FBR…

    Reply
  69. Ayesha malik

    on   said 

    10 marla property consisting two portion and on ground floor two shop not on rent , my sons run these shops. I am a widow of Federal Govt. Employee. Tell me how much property tax due on me. and shop size total 250 Sq. Ft. covered area 8 maral .

    Reply
  70. Arslan Ahmed khan

    on   said 

    i will buy the land and his price is 5780000 so plz tell how much i will pay the holding Tex and i m filers so please tell me how much percent pay the tax

    Reply
    • Arslan Ahmed Khan
      This amount 58 LAC is I think the market value of property.
      You have to pay taxes according to FBR which will be lower than the market value.
      As you mentioned that you are filer
      You have to pay approximately 6% fee as taxes on FBR Rates.

      Reply
  71. Hassan

    on   said 

    Sir,

    I have bought a non-possession plot in G-15 Islamabad in february 2013, now its been more then 3 years and still i haven’t been awarded possession.

    I have bought it in 3million…….on fbr page, for G-15 the current value mentioned is “as per district collector’s rate”

    Now it need to ask whether i am entitled to pay any tax on a non-possession plot?
    2ndly the current market Value will surely be less then 4 million….

    Reply
  72. Sajjad

    on   said 

    i want to sell my property that was purchased in 1969; what tax is applicable to me and how can i benefit from this trend.

    Reply
    • Sajjad
      You have to pay just WHT – Withholding tax if property price is more than 40 Lac.
      1% for tax payer
      2% for non-filer
      Zero WHT is property price is less than 40 Lac
      Note
      All taxes are according to FBR rates of immovable property not the actual market value.
      Sell your property now and buy property early next year when property prices are low.

      Reply
    • Amin Mustafa
      People who have no home should focus on starter homes or plots that are away from city centers and are cheaper in price. Its ideal if you can get cheaper properties on installments. When you have paid the installments you can sell it and move to more expensive areas. This way people can climb the property ladder

      Reply
  73. Hi Sir As Salam
    Example:
    Meray Pas 20 Lac Ka Makan hay woh me ne Sale karna hay
    Property Value 10 Lac hay
    10 Lac Ki construction ho Gaye
    Mujhye batayen k jo CVT ho gi woh 10 lakh par lagay gi ya 20 Lac par plz ..

    Reply
    • Maani From GK
      It does not matter what is the market price of property as you have to pay the taxes according to new FBR Rates.
      FBR has same rates for plot and houses in most areas. So find FBR rates of your area.

      Reply
  74. hello… sir i have purchase a plot in 2003 DHA and wanted to sell it now..How much capital gain i have to pay or any other tax i have to pay.

    Reply
    • Ali
      You have to pay 0% Capital Gain Tax / CGT as withholding period is more than 3 years.
      You have to pay 1% WITHHOLDING TAX if you are tax payer
      or 2% WITHHOLDING TAX if you are non-filer
      or 5% WHT if property worth is less than 4 million according to FBR
      All taxes are according to the new proeprty rates set by FBR

      Reply
  75. ZUBAIR

    on   said 

    hi sir i am planning to buy 7 marla house it cost 75 lac.
    i want to know how much fee i will pay to transfer ownership
    it located in PGSHF MOHLANWAL LAHORE.
    fbr rate 275,750 PKR per marla
    CVT ?
    STAMP DUTY ?
    WHT ?
    ETC

    Reply
    • Zubair
      According to FBR rates you have to pay 6% as taxes
      You will not pay WHT as property worth is less than 4 million rupees according to FBR.
      Your registry taxes will be approximately 1.2 Lac. Rs. 120,000/-

      Reply
      • ZUBAIR

        on   said 

        thanks you very much

        one thing more
        4 million market price or ACCORDING to FBR rate

        FBR RATE: 275,750 X 7= 1,930,250 PKR
        it means i will not pay WHT ? RIGHT

        BECAUSE HOUSE PRICE IN MARKET 75 LACS

        SO PLEASE CLARIFY

        THANKS

        Reply
  76. syed rashid ali

    on   said 

    Dear Sir, Assalam-u-Alakum, I purchased of a flat in PHA(Nawaz Sharif Scheme) .Sale Agreement( amounting 24 lac) was prepared in Jan 2014 but, due to reasons, submitted for Transfer on 03-05-2016 at PHAF, ISL, Now PHAF is insisting to prepare a NEW SALE AGREEMENT ACCORDING TO CURRENT MARKET RATE. Sir plz inform: i)Two different amounting sale agreements for same flate, in the names of same persons is LEGAL? ii) What taxes are to be paid? (plz be noted that I`m a pensioner and purchased this flat on the name of my wife. Owner,who is in abroad, has handed over me this flat and we are living there since Jan 2014)

    Reply
    • Syed Rashid Ali
      The PHAF want you to register your property according to new tax amendments 2016-2017.
      You should prepare new sale agreement
      But not according to current market rates but according to the rates fixed by FBR.
      You have to pay approximately 6% amount as taxes according to the rate of your property as set by FBR.

      Reply
  77. I am the second owner of the property (Shop) i purchased in the year 2012, having 222 sq feet (size) in Hyderabad. I want to sell my shop and i have been told that the FBR (seller Tax) which i have to pay is more than the worth of the shop. kindly help me out.

    Reply
  78. Malik

    on   said 

    is there any amendments to the period to accumulate CGT ?
    i have heard that period has been expanded to the properties upto five years with different rates for CGT?

    Reply
  79. Waseem

    on   said 

    I purchased the pilot of 120 sqr yards from builder, now i need to get registry. this is first registry. how much amount i need to pay and how much the builder will pay for registration. as i already paid Development charges lease is also include in it.
    after revision of new tax rates which taxes i need to pay and which one need to pay by builder.

    Reply
  80. Dear Sir,

    i bought 1K plot in bahria town two years ago. and i am living abroad. so is there any tax have to pay. i dont have any plan to sale out in this year.

    kindly guide please.

    Reply
  81. rkarim

    on   said 

    AA, Dear Sir,

    Thank you for your prompt reply to earlier question. Please now guide . I want to sell my inherited property and one of my relatives is interested in buying , but does not have sufficient funds right now to pay shares of all four hires , he will pay to three their full share are promises to pay 4th share within two years but demands that the property be transferred to him immediately after he pays to first three. the fourth hire is willing to wait two years. Is there some legal way to get the transfer done without paying all hires. Sir ?

    Reply
  82. Naseem

    on   said 

    We are in process of purchasing agricultural land near Hyderabad, Sind. Does the Advance property tax applies for purchasing the agricultural properties as well?

    Reply
  83. rkarim

    on   said 

    We inherited a house in Karachi and would like to sell . We have made relinquishment deed in favor of eldest brother. The process has taken two years.
    Now the youngest brother wants to pay for the share of all the heirs.
    will it be a sale purchase deal between the two. What taxes will the younger brother pay. and what taxes the elder brother pay. is there CGT on inherited property ? How will the CGT calculated if any. The house was build by our father 50 years ago.

    Reply
  84. Hi Dear
    I made an agreement for Purchase a Property for Rs. 10mn on 03-07-2016.I made a 10% Advance Payment and 90% will pay on or before 03-0902016.
    The Seller had purchased this property on 11-07-2013 and as per the sales deed the price for this property has been paid was Rs.400,000 (Of course this amount is understated for TAX Avoidance).
    Do you think that the seller would have to pay 3% CGT on the difference of Sales Price and Purchase Price?

    Reply
  85. Rani begum

    on   said 

    What documents are required at the time of registry from the seller and buyer side?

    Sale agreement will be presented at the time of registry? If stolen

    Kindly reply me.

    Reply
  86. Rizwan Ali Khan

    on   said 

    HI ALL,

    Can any one tell me, how government cater society property sale and purchase, as society 90% deals are society transfer where government is totally unaware, how government apply below taxes on socities proprerty, where as goverment is totally unaware about their transaction:
    10% CGT on sale of properties within 1 year of purchase
    7.5% CGT on sale of properties within 2 years of purchase
    5% CGT on sale of properties within 3 years of purchase

    Would appreciate, if you all share your expert opinion.

    Regards
    Rizwan Ali Khan

    Reply
  87. Mene North Karachi Category 3 mai 240 square yard ka single home 80 lacs ka purchase kara tha 2012 mai , ab new FBR property value 11000 rupees per square yard k hisab say mere ghar ki qimaat hai 2640000/- rupees .. ab agar mai ghar sale karna chahoon tu 80 lacs ka hi sale hoga ya phir 2640000/- rupees mai ?? agar 2640000/- rupees ka sale hoga tu mujhai bohat bara nuqsaan hoga please details batain?

    Reply
  88. As per FBR FAQ Q-8: Quoted below

    ”’ The registration authorities are not authorized to collect such Capital Gain Tax on immovable property. The registration authorities are authorized to collect advance tax under Section 236C from seller of the property and advance tax under section 236K from buyer of the property.

    I am Filer and selling my Flat this month which was purchased last month.
    Let me know clearly that , When and Where have to pay Capital gain tax to the Government-FBR , being a Seller.

    I need your expertise.

    Truly,
    Ali

    Reply
  89. Anum

    on   said 

    I have purchased property 10,000,000/- of Flat @ 1200 Square feet at Gulshan-e-Iqbal BL-7 (Category 1) Karachi

    Book Value is 25,00,000/- on the property document.

    FBR valuation is 1200 * 4500 = 5,400,000.00/-

    On which value to be paid taxes being a Buyer at time of registry?

    1% corporate tax
    Stamp Duty (SD) = 3%
    Capital Value Tax (CVT) =2%
    Withholding Tax = 2% for tax payer and 4% for non-filer

    Kindly advice me urgently because i have insufficient funds at the time of registry.

    Regards,
    Anum

    Reply
  90. Irfan Qadir

    on   said 

    Dear Sir,

    I am purchasing a land in scheme 33, its market price is 1 crore but as per fbr list
    then land price is 5000 per square yards, so for 200 sq yards it’s value will be 10 lacs.

    So as per these calculation do i need to pay any tax ??

    Reply
  91. Fazila

    on   said 

    Please confirm as this Cvt, stamp duty and sociaty Tex is fixed or change as per area and this will necessary to pay at the time of tranfer of lease ? Please reply

    Reply
    • Fazila
      Yes, all taxes are fixed in term of percentages.
      On purchase of property less than 4 million 6% taxes
      On purchase of property above 4m for filer 8% taxes
      on purchase of property above 4m for non-filer 10% taxes

      Reply
  92. Munir Ahmed

    on   said 

    Dear Ghar 47,
    what is the new CVT rates of scheme 33 Karachi and if my developer is now leasing 240 yards plot to my name, scheme Name “Gulshan E Elahi” than CVT will payable to me. Please reply I will be very thankful to you.

    Reply
    • Fazila
      On purchase of property of worth 3 Million Rupees
      you have to pay
      Corporation or society Tax
      Stamp duty
      Capital Value Tax CVT
      That will cost you 1.75-2 Lac
      You have to pay zero Withholding Tax WHT as your property is worth less than 40 Lac

      Reply
    • Saad

      on   said 

      Fazila, following are WHT on purchase
      2% WHT on purchase of property for filers

      4% WHT on purchase of property for non-filers (saadoptimistic@Hotmail.com)

      Reply
    • Saad

      on   said 

      Fazila there is no tax
      at the time of
      purchase if the price is
      less than 4 million
      but there is wht
      at the time of
      sale

      Reply
  93. Ahsan

    on   said 

    Dear Ghar47
    You answered me about WHT ( Advance Tax ) on sale on of property will not be applicable on me , but someone told me that it will be applicable because i hold my property more than 3 year but less than 5 year so it would be applicable on sellers who hold property less than 5 year .
    i am confused because my flat is situated in Govt Described 1st Category i.e.4,500 per sq feet an
    d area of my flat is 873 sq feet so its value is :
    4500*873 = 3,928500/-
    kindly guide me either WHT( Advance tax on sold of property )is applicable on me or not because my property is in less value according to threshold of 4Mn. but it is hold by me more then 3 year but less than 5 year.
    Also another Quotation on Sharjeel Ayyob & Co. Chart is that exemption is allowed after agreement b/w real estate group and FBR that any person who hold property more that 3 year ( instead of 5 year) is exempt to pay WHT ( Advace tax on sale of property )
    link of Site is
    http://sayub.com/fair-value-for-property-relaxed/

    Thanks in Advance

    Reply
  94. Aamir Khan

    on   said 

    The government / FBR has increased the withholding tax threshold. According to new taxes, withholding tax (WHT) will be applicable on properties worth 4 million rupees or more.

    is this 4m fair value decided by FBR?

    Reply
  95. Ahsan

    on   said 

    Dear Ghar47
    You answered me about WHT ( Advance Tax ) on sale on of property will not be applicable on me , but someone told me that it will be applicable because i hold my property more than 3 year but less than 5 year so it would be applicable on sellers who hold property less than 5 year .
    i am confused because my flat is situated in Govt Described 1st Category i.e.4,500 per sq feet and area of my flat is 873 sq feet so its value is :
    4500*873 = 3,928500/-
    kindly guide me either WHT( Advance tax on sold of property )is applicable on me or not because my property is in less value according to threshold of 4Mn. but it is hold by me more then 3 year but less than 5 year
    Thanks in Advance.

    Reply
  96. Iftikhar

    on   said 

    Aoa

    I read your article at your website.

    My question us below

    If I buy property today i.e., 8th Aug 2016 at DHA and I pay the WHT, CVT and stamp duty in due percentage on the new fair market value which is for example 80 lac. Now if I sell the plot after 2 months that is in October then how much CGT I will pay. In actual I received no gain as the fair market value is not changed.

    Reply
  97. Wasim noor

    on   said 

    Kindly answer my queries its really need to know me urgently.

    1) Seller has to pay CGT 2016 at the time of registry or later on? But when will have to be paid by Seller?

    2) Seller is forcing me to pay CGT behalf of me but also interested to purchase this property. Let me know any way out?

    3) What difference between Declared cost and Actual cost? How to calculate CGT 2016 ? Give me any example according to Declared cost & Actual cost.

    Regards,
    Wasim

    Reply
      • Wasim noor

        on   said 

        [ Question 8: There is a confusion in the market and different persons are giving different advices regarding payment of capital gain tax at the time of registration of property. What is the legal position?
        Answer: Capital gain tax under section 37(1A) is levied on the difference between sale price and purchase price of the property. The registration authorities are not authorized to collect such capital gain tax on immovable property. The registration authorities are authorized to collect advance tax under Section 236C from seller of the property and advance tax under section 236K from buyer of the property. Hence capital gain tax on the sale of immovable property is to be paid by the taxpayer himself while filing the income tax return. For example, if any sale of immovable property is made in the financial year from July 2016 to June 2017, the taxpayer while filing the income tax return for the tax year 2017 shall pay the capital gain tax after adjusting the advance tax paid under section 236C. ]

        Noted: I am Non filer and also don’t want to filing the income tax return for the tax Year .
        How shall I pay the Capital Gain Tax to the Government if I sale my property in this month August 2016.

        What scenario will be applied in my case as a no filer .

        Kindly need your assistance as soon as.

        Regards,
        Wasim

        Reply
          • Wasim noor

            on   said 

            Your quick response is fabulous.

            Let me know that , I am going to joint property purchase in the name of wife and myself.

            We are planning to buy flat in the next month September 2016. .
            Remember, Main owner of flat will be my wife (Non-Filer) and Second owner is me (Filer).

            Being a Buyer , We will pay Taxes on the following

            Buyer – Filer Total Taxes = 8%
            Buyer – Non Filer Total Tax = 10%.

            Which taxes rate will be applied in our case at the time of registry?

            Kindly answer my query.

            Regards,
            Wasim

          • Wasim noor

            on   said 

            Thanks for your prompt response.

            How to calculate FBR valuation of property ?

            We are going to purchase Flat @ 1200 square feet at North Nazimabad -Karachi.

            Let me know value of property as per location and square foot and their formula?

            We have to takeout value of property as per FBR valuation.

            Regards,
            Wasim

    • Wasim noor

      on   said 

      Thank for quick beneficial answer.

      When Seller (NON-FILER) will have to pay of Capital Gain Tax -CGT 2016 at the time of registration of property ?

      Regards,
      Wasim

      Reply
      • Wasim noor

        on   said 

        FAQ: Q-8 in ANSWER said that , ”’ The registration authorities are not authorized to collect such CAPITAL GAIN TAX on immovable property. The registration authorities are authorized to collect advance tax under Section 236C from seller of the property and advance tax under section 236K from buyer of the property. Hence capital gain tax on the sale of immovable property is to be paid by the taxpayer himself while filing the income tax return. ”’

        But you (GHAR 47) wrote me that ”YES” for paying Capital Gain Tax -CGT 2016 at the time of registration of property .

        Kindly give me clear answer and resolve my queries as per your expertise.

        Regards,
        Wasim

        Reply
        • Wasim noor

          on   said 

          Thanks for your prompt response.

          How to calculate FBR valuation of property ?

          We are going to purchase Flat @ 1200 square feet at North Nazimabad (Category-1), Karachi.

          Let me know value of property as per location and square foot and their formula?

          We have to takeout value of property as per FBR valuation.

          Reply
  98. Mohammad Abid

    on   said 

    Dear Sir
    Primarily thanks for having such informative site.
    Secondly seems people are most dealing in this site is belong to Lahore/Punchab.
    My question is related to Karachi/Sindh, if you would answer would be great.

    1st Being I am residing in Gulf, would there any benefit or advantage given for non-resident Pakistani in this new property tax, as I am here in 25 years & have no NTN, I tried in last year to get or become a filer but I was told this is not possible.
    2nd, Scheme 33 is mentioned in one line in new SRO 662-2016, there are hundreds of different societies, ranging from developed to very undeveloped areas; will all treat under same rates?
    Thanks in advance

    Reply
    • Mohammad Abid
      Q 1
      There are many rumors of discounts for overseas Pakistanis. Many websites are mentioning it.
      Reason to keep investments in real estate sector.
      But there is no authenticity is these reports.
      What is hate is even foreign Pakistanis are not filers. The great Pakistanis who send $20 billion of record remittances. From my local observation how much Pakistani spending power depends on foreign remittances is, due to bad economic situation in Saudi Arabia, Middle East and Europe, Bazaars were empty in Ramadan.
      Foreign Pakistanis must be given some relaxations.
      Q 2
      Yes all are treated in same category.
      What I understand is that due to very short period of time just to resolve the issues, FBR has not property worked on rate valuations. This is why in many cases cheaper and expensive housing societies rates are nearly same and in many case valuation rates of cheaper societies are high.

      Reply
  99. Malik

    on   said 

    Admin thanks for such usefull information… i bought a residential plot during Aug-2015 worth Rs.5.175 Million and afterwards constructed house for resale purpose…now if i sale this house approx at 120.000 Million how much CGT will i have to pay according to new Finance Act 2016.?
    please guide.

    Reply
    • Malik
      In many areas according to FBR valuation rates there is no difference between residential lot and houses. In this case you have to pay the difference according to new valuation rate. You CGT ill be under 1 lac.

      Reply
      • Malik

        on   said 

        Thanks for your prompt response dear but i want share one mre thing….according to the new Notification S.R.O.673 (1) 2016 for Lahore my plot falls into Allama Iqbal Town and Rate per Marla is Rs.480,000 for residential.
        i need further clarification please.

        Reply
        • If DC rate at that tie was for example 280000 per mala
          now it is 480000 per marla
          capital gain is 2 lac per marla
          tax to be paid within i year
          CGT = 1% so on every Marla you have to pay 20 tounsands

          Reply
    • Well Mr. Malik Google for SRO 673 and you’ll find a link to official link to federal board of revenue’s website. Open the pdf attached sheet there and you’ll find value per marla for properties in different areas/colonies/towns of all major cities of Pakistan. Multiply value per marla into no. Marla’s of your house. That’s how the value for your property will be determined for taxation purposes, not the value on which you sell your house.

      Deducted the deemed fair market value from the cost of your house and that’s how you’ll be able to calculate the amount of capital gain. Then simply multiply it with the rate of tax depending on number of years you have held this property under your name.

      You can calculate tax amount right now irrespective of the actual sale proceeds.

      Hope my answer could resolve your query

      Reply
  100. Hi,

    I visited Cant Kacheri in Lahore today, I am buying a property in Herbanspura area of Aziz Bhatti Town.
    Someone told me that the buyer will pay the capital gain tax. I think this is wrong. What is your opinion, who will pay the CGT?
    Secondly, if the seller is supposed to pay the CGT and they don’t pay it at the time of registry what will happen? Will that have any affect on the buyer?

    One last thing, please take some time and write a detailed blog post about CGT. I would love to help.

    Thank you very much for your help.

    Regards,
    Naeem.

    Reply
    • Naeem Malik
      Buyers don’t pay CGT

      Buyers pay

      1% corporate tax
      Stamp Duty (SD) = 3%
      Capital Value Tax (CVT) =2%
      Withholding Tax = 2% for tax payer and 4% for non-filer
      So overall Buyer has to pay approximately 8-10% Taxes on purchase of property according to new FBR Valuation Rates.

      Reply
  101. Rafeeque

    on   said 

    Dear, recently I invested all my savings in property in new lahore society.

    I am living in Saudi Arabia…

    what is the situation there dear…

    Reply
  102. Muhammad Sibtain

    on   said 

    i want to buy plot in G-15 / G-13 / DHA in islamabad. What u suggest properties will go down in these sectors.

    Reply
  103. Muhammad Sibtain

    on   said 

    Dear

    I want to buy plot in G-15 , G-13 , DHA islamabad. I have budget of 10 Million. Should i wait for lower prices or here there would no effect.

    Reply
  104. Rohan

    on   said 

    march 2016 i buy bismillah housing scheme lahore 3 marla plot 12 lac.that time dc rate per marla 1.10 lac, now i want to sale it 18 lac.AS per New FBR rate per marla 2.28 lac. please explain me how much i pay tax.and also tell me 18 lac is enough if i sale now.

    Reply
  105. Kash

    on   said 

    There is so much confusion regarding revised rates etc. You have provided excellent information. Thank you.
    I have signed sales agreement to buy 240 yard ground floor house in Gulshan, Karachi that falls under category II. I am active tax payer/filer. Please let me know following :-
    1- Value of my property as per FBR chart
    1a- Applicable Witholding / Advance Tax rate and amount
    2- Collector Value as per DC Rate
    2b- Stamp Duty (SD)
    2c- Capital Value Tax (CVT)

    Reply
  106. Adnan

    on   said 

    These details were old.
    what is current details of Capital Value Tax

    Houses

    Less than 100 sq yds – 0% CVT
    100-500 sq yds – 2% CVT
    More than 500 sq yds – 2.5% CVT
    Apartments

    Less than 1,000 sq ft – 0% CVT
    1,000-2,200 sq ft – 2% CVT
    More than 2,200 sq ft – 2.5% CVT
    Commercial Property

    All sizes – 2.5% CVT

    Reply
  107. Noor

    on   said 

    I have house in Islamabad sector G13 which i buy last year i sum of 1 cor 20 lac, plz can you tell me how many tax i will paid?

    Reply
    • Noor
      New price – old price = profit
      Profit per 10% capital gain tax if yous ell within 1 years of purchase
      7.5% CGT if yous ell within 2 years of purchase
      5% CGT if you sell within 3 years of sale
      0% CGT if you sell after 3 years of purchase

      Reply
  108. saba

    on   said 

    dc rate has been announced..increased almost 150,000 lac per marla..that mean if before registry of 03 marla home worth 900,000, now increased to 1,350,000.. what will tax amount for buyer..
    total 1,3500,000*5%=67,500/-
    no with holding tax as property less than 04 (M)… am i right or any addtion

    Reply
  109. Ali Zaib

    on   said 

    Dear
    I made an agreement to buy a One Unit Banglow for Rs. 8mn in Karachi near by Safoora Chowrangi in the month of June-16 and paid 10% advance.
    Now the scenarios has change after June 30, 2016 and the prices are started to going down.
    Pls tell me that Registry charges, WHT on this amount and any other charges on this amount.
    Is it possible to cancel the Agreement or ask the seller to reduce the price?

    Regards
    RAZ

    Reply
    • Ali Zaib
      Its better to wait and negotiate with the seller
      Prices are going down anyway
      Look at Bahria Town Karachi NEWS
      which are very discouraging for the investors
      Let the dust settle first before you take any move
      Market will see its true face and direction from 1 October 2016.
      August Month of Dharna and protests
      September is the month of holidays and eid

      Reply
  110. Bhai I was going to buy flat in f.b.area Karachi 3 months ago for about 1700 sq foot its value was 9,000,000/rs , what would be its value as the building is newly constructed

    Reply
  111. Rohan

    on   said 

    march 2016 i buy bismillah housing scheme lahore 3 marla plot 12 lac.that time dc rate per marla 1.10 lac, now i want to sale it 18 lac.AS per New FBR rate per marla 2.28 lac. please explain me how much i pay tax.and also tell me 18 lac is enough if i sale now.

    Reply
  112. Hi, do you think flat prices in Clifton, karachi will fall – booking fora new flat in clifton is 4.5 cr, do you think price will decrease in coming months?

    Reply
  113. samsad butt

    on   said 

    Its a good analysis. However, it is unjust for those who invested in recent times. For example if a person had purchased a plot for 1.5 crore let say in bahria town or DHA … its worth will decline to half… this is gonna be disaster for middle class.. only cash holding people whether it is black money or not will get benefit

    Reply
    • Samsad Butt
      Unfortunately this is the real situation of market
      Like others, I can say don’t panic every thing will be nice OK bla bla
      NO
      Reality is different
      2005 Crash
      Average 1 Kanal plot price in DHA PHASE 5 in 2005 jumped to 1.5 crore
      During crash of 2005 price were crashed to 65-75 lac
      The worst nigh-mare
      Many people lost their life time savings
      Situation is much worst now
      Unfortunately DHA and Bahria served as casino
      Investors are in panic
      no one is willing to invest in real estate sector now
      In old residential areas 20-25% price crash
      DHA, Bahria and other housing schemes who are selling plot files 40-50% price crash

      Reply
  114. Sir
    I bought flat in 2015 Oct
    2 flats
    In 1 em living and 1 is rented out
    The price that time 1.45 coror

    What u I’ll think the prices crash how many %
    Any idea ?
    And pls tell me tax also
    Thanks

    Reply
  115. Babar Nazar Awan

    on   said 

    one of the most pathetically analysed article, author seems to be govt paid who is trying to show us the green. specially where he has written the para, genuine buyer will have advantage.

    Reply
    • Babar Nazar Awan
      I have written this blog according to fundamentals of the market
      Real estate property prices are high due to day trading and speculations
      Due to new taxes and property valuation system, real estate activities have stalled and investors are in panic.
      Prices are already falling
      Due to the falling prices Genuine Homes Buyers are at advantage

      Reply
      • Imtiaz rasool

        on   said 

        SIR Plz explain one point of capital gain tax…
        Suppose i bought a plot on 100000 per marla as per dc date 2 months before.
        Now fbr rate is suppose 200000 lac.
        Size is 10 marla…
        I earned 1 million
        Gain tax will be 1 lac…
        Now suppose… the person B bought it from me in 200000 per marla
        And sold tomorrow while fbr is still 200000
        He earned zero profit
        What CGT fbr will charge from zero profit on zero profit
        As FBR cant raise rate b4 one year

        Reply
        • Imtiaz Rasool
          FBR is working on it too. Hope we will get clear picture in few weeks.
          But what is clear government will get WHT and registry fees form buyer so win win for government

          Reply
  116. Mian Sohail Ahmed

    on   said 

    I want to know that presently price of agricultural land 3 kanal is Rs.7,50,000/- on such price how much capital gain tax will apply and seller is being sell within one year period. regards.

    Reply
  117. saba

    on   said 

    VERY INFORMATIVE COLUMNS.
    I WOULD LIKE TO ASK i want to purchase 3 mrla home in samanabad lahore..but value of 3 mrla rang from 65 lack to 75 that too much.. while DC rate stand for 300,000/- per marla.
    what u suggest will i purchase home worth 65 or wait for prices go down. samanabad is old posh populated area in the middle of the lahore city..
    i m filer. how much tax i have to pay according to new scenario.

    Reply
    • Saba
      as you are purchasing home worth 70 lac
      you have to pay Stamp Duty and Capital Value Tax for registry 5%
      New Dc rates will be 50% of current property value
      so you have to pay tax on 35 Lac (rates can be plus minus)
      1.75 Lac
      Plus 3% WHT as you are filer
      In short on purchase of property worth 35 lac you have to pay 2.5 Lac in all.

      PRICE CRASH
      Prices are crashing everywhere. Don’t panic to buy. Wait and in first week of October you will get many good property options at much affordable rates.
      Worry not and hope for the best.

      Reply
      • saba

        on   said 

        thanks for apprciating.. actually i was looking home in specific localit from last 06 months.. but prices go up and up…specially in samanabad investors were in thier swings and prices go up and up and up..rate of land goes to 17.5 lack per marls… just now a house demand before 65 final come down to 60…. home it will come to 50 as soon as possible

        Reply
  118. Ahsan

    on   said 

    I Sold my Flat in Karachi , but sales deed not yet done,I Purchase this flat in July 2013 so i think CGT will not be applicable on me,
    i want to confirm that either WHT on sales of Immovable property is applicable on me or not , i purchased flat and mention DC rate Value on Sales Deed Which is 873,000/- ( at the rate of 1000per sq feet on 873 sq feet area )
    so am i exempt on WHT on sales on basis of upto 4Mn exemption policy.

    Reply
  119. Ahsan

    on   said 

    I sold my flat but sale deed not yet done,i purchase my flat before 3 year and 8 days before i think CGT will not be applicable on me as per now notification.
    i want to now that is WHT on my property will applicable , i registered my flat @ 873,000/- ( 1000 per Sq * 873 sq feet area ) so WHT on Sale of Immovable property is applicable on me or not or it is exempt as per 4Mn limit.( i am also a filer of Income Tax ) also please tell me the fair market value of property.

    Reply
  120. Rohan

    on   said 

    AOA, can you explain me Dc Rate & FBR rate in bismillah housing scheem 3 marla plot A block in lahore GT road near bata pur.I purchase property of 11.85 lac+27 thousand for registry before april2016. now i want to sale 18 lac.please explain how much i pay all taxes.

    Reply
  121. Irfan Qadir

    on   said 

    i bought a land in a society in karachi for 95lacs and spent 80 lacs on construction, now i want to know if the prices crashes will it effect the land price only or construction prices also.
    for example total value = 175lacs and after crash land become 50lacs, so will my house price be 125lacs or even lesser.

    Reply
    • Irfan Qadir
      In case of property crash in Pakistan
      Only land prices crash as investors have plots
      Construction is getting more and more expensive due to wage rise and fast inflation in Pakistan.
      Worry not.

      Reply
      • Irfan Qadir

        on   said 

        Thanks for your swift and valuable reply.

        You people are real gem for Pakistan,providing consultancy free of charges

        Allah bless you brother

        Reply
  122. Aijaz Siddiqui

    on   said 

    Regretfully to say no one though about overseas or Ex-Overseas Employees, who send foreign exchange and they bring money legally.

    They also must be given at least 50% relief for their being Patriot. One can prove documents how he sent the money.

    Reply
    • Aijaz Siddiqui
      Many thanks for our comments and contribution to this vital ongoing discussion
      It was better if government has given some relief of 25% to overseas Pakistanis as a reward.

      Reply
  123. Very nice comments and topics
    Can u pls tell me about
    Pechs Karachi flats rates in coming days
    And ur opinion about property in pechs can we hold or sell our flats?

    And if we purchased plots in dha Karachi
    Around
    20-25 years ago
    What’s the price
    Thanks
    For ur advice
    Pls mail me also

    Reply
    • Ahmed
      Like bright sun it is clear that property prices will fall due to new taxes.
      If you want to buy then wait
      If you want to sale, sell your property immediately
      No CGT Capital Gain Tax on you properties as you bought 3 years before.

      Reply
  124. Khuram

    on   said 

    Aoa. I live in italy for 7 years I purchase plots with instalments after July 2016.plz explain me about overseas property taxes.
    Thanks

    Reply
    • Khuram
      FBR wants taxes no matter buyer or seller is local resident or living abroad

      ON PURCHASE

      You have to pay Capital Value Tax and Stamp Duty at times of registry = Approximately 5% of the value declared by FBR

      ON SALE

      10% CGT on sale of properties within 1 year of purchase

      7.5% CGT on sale of properties within 2 years of purchase

      5% CGT on sale of properties within 3 years of purchase

      0% CGT on sale of properties after 3 years of holding period

      Reply
  125. Umair

    on   said 

    Hello
    I bought the house on 17th feb 2016 rs 70lacs and want to sell it on 80lacs in lahore eden value homes ….what application apply in me if i sell it rite now
    Umair

    Reply
    • Umair
      Purchase = 70 lac
      sale = 80 lac
      Value of house recorded at the time of registry = 7 lac
      Value at sale now according to FBR = 40 lac (50% of real property value)
      40-7= 33 lac profit or gain according to government
      Holding period is more than 1 year but less than 2 years
      you have to pay 7.5% as CGT Capital gain tax on 33 lac
      33×7.5% = 2.475 lac
      so you have to pay 2.475 lac as CGT on sale of this property
      Little Plus minus is expected

      Reply
  126. I bought a flat on installments from builder my installments were completed on 2015 and November 2015 it was sub leased on my name I’m a banker a salaried person paying income tax do I have to pay cgt if I sell the property now? How much? What is the slab of FBR for taxation?

    Reply
    • AA
      Yes you have to pay the CGT. CGT is 50% only for government employees.
      You have to pay the CGT according to the registry value of property at purchase and sale time.
      Value of property on sale – value of property at sale = CGT
      10% CGT if sold out within 1 years of purchase
      7.5% CGT if you sell property within 2 years of sale.
      5% if you sell property within 3 years of purchase.
      0% CGT if you sell after 3 years of purchase.

      Hope it helps you out. wait till December to avoid high CGT.

      Reply
    • Huzaifa

      on   said 

      Respected sir,
      Recently i bought a portion of rupees 1 crore. I want to ask you that what amount of tax i have to pay and what not to pay ?
      The portion will be sub-leased by the owner.

      Reply
      • Huzaifa
        to calculate tax amount you need to know
        Date of purchase
        DC rates at the time of purchase
        DC or FBR rates at time of sale
        CGT = FBR rate at time of sale – DC rate at time of purchase

        Reply
    • Huzaifa

      on   said 

      Respected sir,
      Recently i bought a portion of rupees 1 crore. I want to ask you that what amount of tax i have to pay and what not to pay ?
      The portion will be sub-leased by the owner.
      Onething more, i also want to know what amount of tax will the owner is bound to pay according to new rule?

      Reply
      • Huzaifa

        ON PURCHASE

        You have to pay Capital Value Tax and Stamp Duty at times of registry = Approximately 5% of the value declared by FBR

        ON SALE

        10% CGT on sale of properties within 1 year of purchase

        7.5% CGT on sale of properties within 2 years of purchase

        5% CGT on sale of properties within 3 years of purchase

        0% CGT on sale of properties after 3 years of holding period
        For property worth 1 crore with FBR rate approximately 50% = 50 Lac
        We assume registry value at 10 lac
        so your profit is 40 lac
        on sale within 1 year of sale you have to pay 4 lac
        on sale within 2 year of sale you have to pay 3 lac
        on sale within 3 year of sale you have to pay 2 lac
        on sale after 3 year of sale you have to pay 0% as CGT

        Reply
  127. Rohan

    on   said 

    I am a salaried person and I have planned to sale a 3 marla plot in bismillah housing scheem for Rs. 18 Lac. I just wana ask weather i will loosing or gaining something from this property, your expert opinion is solicited. It is also mentioned that I was purchase this plot for dealer since march 2016 (12.35 lac) and i pay 27 thousand for registry .
    thanks.

    Reply