FBR notified the exemption ceiling for annual property rent income
ISLAMABAD - The Federal Board of Revenue (FBR)has notified the exemption ceiling for annual property rent income.
FBR has clarified the new taxation system for selling open plots and constructed properties under the Finance Act 2019.
In its notification dated July 30, 2019, the revenue watchdog has exempted tax on annual property rent income (gross) valued at Rs0.2 million or under.
The rate of tax on the gross amount of rent is as under:
“The holding period for taxation of the capital gain of open plots has been increased to eight years and for constructed properties, to four years,” the notification read. “The type of immovable property, whether open or constructed, will be determined at the time of sale of the property.”