Calculation of CGT on constructed house.

1
0

How CGT will be calculated (using FV/DC or by using actual proceeds) if I buy 5 maral plot in DHA phase 6 and sale it after constructing a house. Plz guide. for example.
Plot Cost RS= 8,000,000
Transfer/Misc charges= 300,000
Construction Cost= 5,000,000
Sale price = 15,000,000

  • You must to post comments
1
1

Advance Income Tax (adjustable) on purchase of immovable property under Section 236-K increased from 1% to 2% for tax filers and from 2% to 4% for non-filers
Advance Tax (adjustable) on sale of immovable property under Section 236-C increased from 0.5 to 1% for filers and from 1 to 2% for non-filers
Capital Gains Tax (CGT) has undergone two major changes in terms of time frame and fair market valuation of sale price, which are summarized below:
a) CGT will be levied at the rate of 10% of difference between the fair market value at the time of sale and purchase if the property is sold within 5 years of its purchase.

b) Fair Market Value: The Finance Bill has inserted a sub section in Section-68 wherein the concerned Federal Board of Revenue (FBR) officer can refer a certain property for its fair valuation to valuators approved by State Bank of Pakistan. To this effect, State Bank has already issued relevant notification along with its approved list of valuators. Secondly, the Finance Bill specifically mentions that the current Deputy Commissioner (DC) rates do not bind FBR to use it as reference for property valuation. It is important to mention that under the Income Tax Ordinance, Deputy Commissioner had valuation powers but due to certain reasons, these powers were inoperative and consequently DC rate was used and accepted by FBR as the sale price for any property.

  • You must to post comments
Showing 1 result
Your Answer
Guest Author
Post as a guest by filling out the fields below or if you already have an account.
Name*
E-mail*
Image
File NameSize
There are currently no files uploaded.
Maximum number of files 4, maximum file size 2MB.
Supported file formats: gif jpeg jpg png
Downtown Mall Liberty
Fully serviced luxury hotel apartments in the heart of Gulberg, furnished by Wing Chair. 24/7 Power backup -Parking 4 floors -Commercial shops 5 floors -Multiplex 2 floors -Gym, sauna, steam -Roof Top Restaurant.
Learn more
7% Guaranteed Rental Returns
Only 2 Lacs Per Month
Register interest
Downtown Mall Liberty
Register interest
7% Guaranteed Rental returns
Only 2 Lacs Per Month
Fully serviced luxury hotel apartments in the heart of Gulberg, furnished by Wing Chair.
LIFE IS ABOUT MAKING CHOICES & WE WILL HELP YOU MAKE THE RIGHT ONE
We have your back, no matter where you want to invest, we bring you the best developers and projects from around the Globe.
FIND ME THE BEST CHOICE
LIFE IS ABOUT MAKING CHOICES & WE WILL HELP YOU MAKE THE RIGHT ONE
FIND ME THE BEST CHOICE
LET US DO THE HARD WORK SO YOU DO NOT HAVE TO
Join the luxury of our managed real estate services to find out when, where and how to invest .
APPLY NOW FOR OUR SOLUTION
What are your goals?
Your destination?
Capital Gains
Rental Returns
Pakistan
Dubai
Let us do the hard work so you do not have to
Join the luxury of our managed real estate services to find out when, where and how to invest .
APPLY NOW FOR OUR SOLUTION
Rental Returns
Pakistan
Capital Gains
Dubai
Your goals?
Your destination?
Get access to the real information, subscribe our BLOG
Subscribe Now!
No spam ever, unsubscribe anytime.
REAL ESTATE WITH REAL INFO
Subscribe Now
REAL ESTATE WITH REAL INFO
Subscribe