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Dear Captain sb
I just came across the property tax calculator for buyer on ur website and i believe there is an error.

The calculator needs to select the HIGHER VALUE between dc rate and the amount that has been agreed between buyer and seller.

Moreover, if HIGHER VALUE is higer than Fbr rate, no tax is applied.

Plz refer to 236w 2016 fbr circular.

I wud like to mention that i really appreciaye ur work and above suggestion is for imporvmnt.

Jazakallah

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Dear Zain,

Thank you for pointing it out but i am a bit confused about what you wanted to say.

If you are paying CVT stamp duty at the actual price of the property agreed between seller and buyer which should be usually higher than DC and FBR rate both than you donot actually pay the 3% super tax ?

But why would you pay higher taxes if you have the option to pay less?

Jazak Allah

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Dear Captain Sb

Thankyou for the feedback and i apologize for not being clear. From a buyer perspective, two FBR taxes are to be paid i.e. 236 K and 236 W. 236 K is applicable on FBR rate provided FBR rate is greater than 4 million. This is exactly the way its incorporated in the calculator.

For 236 W, it will be 3% on the difference between the FBR PRICE and REGISTERED VALUE. FBR has a specific definition for REGISTERED VALUE. For example X is the DC price and Y is the price that has been agreed between the seller and buyer. The registered value will be higher of the two (i.e. between X and Y).

So for 236W, if FBR PRICE is greater than registered value, then 3% becomes applicable. On the contrary, if FBR PRICE is less than registered value, 236W does not remain applicable.

Imlaak calculator considers only two inputs i.e. FBR and DC value. I think technically it should ask for three values i.e. FBR, DC and Agreed Value and calculate accordingly. moreover, if the fed registered value is greater than FBR value, 236W tax should be ignored by the system.

The whole point of floating the topic is purely academic and suggesting imporvement (if deemed legitimate as my understanding might be incorrect). I took the time to mention it as i regularly follow your website and sincerely appreciate the efforts you have put into it.

The link for the corresponding FBR circular
http://download1.fbr.gov.pk/Docs/20161281612549834CircularNo18OF2016(IncomeTax).pdf

Thank you Captain sb and have a great day.

Regards

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