What is CGT rate for the seller now?
As per 2016 FBR Notice, it will be levied at following rates on property investments in Pakistan .
* 10% of profit you have made if you sell it in first year of your purchase.
* 7.5% of profit you have made if you sell it in second year of your purchase.
* 5% of profit you have made if you sell it in third year of your purchase.
* 0% of profit you have made if you sell it in fourth year of your purchase.
* 5% flat rate on profit for all properties purchased before 1st July 2016 if they are sold within 3 years of there purchase.
* For army officers benefit plot and plots for dependents of Shahuda the CGT is 0%.
When should you file tax returns?
You should file tax returns after 1st July of each year until the last date notified by the FBR.
What methods of Remittance FBR accepts?
FBR only accepts BANK to BANK transfer and licensed Money exchange transfer as legal transfer.
What remittance proof should i get from my bank for FBR use?
You must make a written request for home remittance certificate, which is given free of cost by most banks in 7-14 days.
What is the difference between DHA Affidavit and Allocation file?
* DHA affidavits are files issued to the investors against land.
* Affidavit files after sale are converted in to Allocation files
* Selling of Affidavits does not need purchaser to visit the DHA office.
* Affidavit transfer fee is less than allocation.
* Affidavit purchaser does not pay any tax but allocation purchaser pays all taxes.
* Allocation file does not carry plot number
* Selling of Allocation needs seller and purchaser to visit the office together
* Market rate of allocation is less than affidavit to compensate the higher transfer fee
* Affidavit transfer takes 3-5 working days while allocation takes 5-8 working days
What is an open file?
Open files have purchaser name empty and do not involve transfer fees. The one who holds the open file certificate is the owner of the file. The developer make ask any time to close the open file sales giving a dead line. Closed file may be opened by some developers after paying a certain fee.