ISLAMABAD – Federal Board of Revenue unveils new taxation system overcapital gains on plots and Houses for sale.
Through the Finance Act, 2019, the holding period for taxation of capitalgain of open plots has been increased to eight years and for constructedproperties, it has been increased to four years, according to explanatorynotification issued by the Federal Bureau of Revenue (FBR) regarding thenew taxation system for selling open plots and constructed properties.
It further mentions that where the holding period does not exceed one year,the total amount of gain will be taxed, whereas the gain will be calculatedby deducting the cost from the ‘consideration’ received.
If the holding period is more than one year but does not exceed eightyears, in the case of open plot or four years in the case of constructedproperty, 75 percent of the capital gain will be taxed.
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It has been further clarified that the form of immoveable property, whetheropen plot or constructed, will be determined at the time of sale of theproperty.
