Lahore: Federal Board of Revenue (FBR) has decided to withdraw the holding period exemption in the collection of the advance tax imposed on the sale and purchase of immovable property. The FBR said Sub-section (3) of section 236C of the Income Tax Ordinance, 2001 has been omitted. The statement of the FBR says, “Now advance tax on sale or transfer of immovable property will be collected under this section irrespective of holding period,”
The FBR has introduced changes and amendments through a notification in the Income Tax Ordinance 2001 for collecting withholding taxes on the sale or purchase of immovable property. As per the new notification, the advance tax would be collected from every seller rather than allowing an exemption for the ones who held the property for more than 4 years.
Further, the revised rate of tax for non-filers has been enhanced by 100% for 236C and 250% for 236K. Moreover, the rate of advance tax on the sale and purchase of immovable property has been increased by 100%. The taxes have been raised as per the recently introduced Finance Act 2022. The statement of the FBR further added that the rate of advance tax on sale or transfer and on purchase or transfer of immovable property had been raised from 1% to 2%. The FBR further added that necessary changes have been incorporated in rule 1 of the Tenth Schedule to the Income Tax Ordinance 2001.