Karachi, July 31, 2019: The Federal board of revenue explained tax collection measures on plot said that 100 percent gain will be taxed on plots if the holding is up to one year 75 percent of the gain will be taxed if the holding period of open is more than 1 year but not more than 2 years.
No tax will be levied on the gain if the holding period of the plot is more than 8 years. FBR further explained the tax rates on the amount which has been gained. 5 percent tax will be levied on the gain up to Rs 5 million.
The 10 percent tax will be levied on the gain of more than Rs 5 million up to Rs 10 million. Meanwhile, 15 percent tax will be levied on the gain of more than Rs 10 million up to Rs 15 million, 20 percent tax will be levied where the gain is above Rs 15 million.
Previously on plots and on constructed properties tax rate was 10 percent tax on the gain if the holding period is up to 1 year, 7.5 percent tax on the gain if holding period more or equal to 1 year, but less than 2 years, 5 percent tax on gain if holding period more or equal to 2 years but less than 3 years. Tax rate was zero where the holding period is more than 3 years