Islamabad: According to a news article, the Federal Board of Revenue (FBR) revised and issued the Withholding Tax (also known as Advance Tax) rate on sales and acquisitions of immovable property. The changes were made in line with provisions 236C and 236K of the Income Tax Ordinance, 2001, by the supreme tax agency.
According to the specifications, if the seller of an immovable property is a tax filer, he will pay 1% Advance Tax. If the property seller’s name is not on the Active Taxpayers List, the tax rate will be increased by 100 percent, or 2%. (ATL).
The notification tax will be the lowest if a property is acquired and sold during the same year, according to the news source. Aside from that, the tax will be changeable. It was also noted that if a home is sold after four years, the Advance Tax will not be applied.
Similarly, property buyers (tax filers) will pay 1% of the transaction’s fair market value. The tax rate for non-filers will be 2 percent. According to tax experts, the person in charge of collecting instalment payments is accountable for collecting the tax from the property’s purchaser or allottee.