This is one of the frequently asked questions so, here goes the detail: The withholding tax on property in Pakistan is the fusion of Capital Gain Tax and Capital Value Tax. It is the amount that is paid by both the parties, the buyer and as well as the seller. It is paid when the property is finally sold.
As per the percentage of the Tax, both parties have to pay withholding tax. If the property is already a filer on income tax by the buyer, it remains 2%, whereas if the buyer is a non-filer, the tax surges to 45%. The large gap ensures that buy property in Pakistan should become tax filers and non-filing has its heavy cost. The same is for the sellers. If they are a filer, they have to pay 1% of the tax, but if they are non-filers, the tax will charge as much as 25% withholding tax.
If you want to know how much Tax do you need to pay?
The points are given below show tax exemption:
There are three easy ways you can pay property taxes in Pakistan those are:
Taxes are collected in TAX collection offices set up in every provincial area of Pakistan. You can easily pay your taxes by contacting the tax department of your respective area and pay your taxes following the procedure advised by them.
The easy way to pay your tax in Pakistan is via banks. Visit your nearest bank to generate an online property tax challan and pay your tax amount.
This is probably the easiest way you can pay your tax. You can make online payments through online banking systems from the comfort of your own home. You need not step outside the coziness of your home, a single click does the job, it is that simple.
The Government of Pakistan, in this regard, has initiated a site by accessing it you can calculate the exact taxable amount for the benefit of property owners. Now you can calculate the tax by just entering the details.
Irrespective of your land be it vast/costly or less, one should stand as a responsible citizen. Responsibility towards the state is the first sign of your integrity. Responsible citizen remains accurate about their tax details without the slightest evasion. This is an act that builds the economy of the country. If we have a look at real estate, people like to buy plots and homes in different private societies for their comfort and luxury but here tax again for your own comfort of civic responsibility must be ensured.
The tax applies to all private/government property buyers and sellers. Thus, if you decide not to pay it, strict action as per law can be initiated against you by the FBR. The government has made it easy to calculate your tax and possession of property law in Pakistan to pay within due time via banks, tax departments, or online transfers So, now we need to show responsibility as well.
Property prices are on the rise day by day, so it is the best investment opportunity one can avail So, never let the opportunity slip. The investment of today is the Return on Investment tomorrow. The earlier you make an investment the greater the fruits.