Another stupidity by the government as appeared in the news.
Http://tribune.Com.Pk/story/1110678/govt-may-double-tax-transfer-properties/
Not good for real estate business
They are trying there best to kill the only booming business in Pakistan.
Property taxe’s source of income for haramissssss
This is clearly double taxation, why withholding tax on seller , when he is already paying the Capital Gain Tax. This will increase the undervaluation of property to avoid both Withholding and Capital Gain. Further more CVT is also imposed on one kanal or more property size…
@ Martix…Sir you are right but undervaluation for a tax filer and specifically salaried class would not be beneficial since it would reflect the amount as black money which would be white in fact. Suppose a salaried person buys a plot worth 1 crore utilizing his white money and sell it for 1.2 crore. Now when he would should the amount of 1 crore i.e no profit no loss, his 20 lac would be considered as black money in documentation…So what would the way out for this problems of salaried class.?
You are right Saadi, One way is to give the Capital Gain tax on the 20 lac he has earned, it would be 10 % or 2 lac depending on the tax rate. Further more he would have to give 1 % Withholding on 1.2 crore, it would further be 1.2 Lac so total he has to give 3.2 lac on a profit of 20 lac. It means 16 % Tax on his profit.
Thats why high tax rates encourage undervaluation...I agree that for non filers the rate should be high , but for filers this is discouraging...
@MAtrix…Sir withholding tax is adjustable for filers so no issues…But these steps would definitely have adverse affects on realty sector.And what i personally think that, if implemented, people would now be more inclined towards overseas properties who have good budgets like 4,5 crores and plus and have some acumen of other realty sectors…
Hum Zinda Nation hain (mostly corrupt)from head to tail, es problem ka b koe na koe hul hmary Danishwar nikal he lein gay.
What is the total amount( including types ) of taxes one has to pay on purchase of one kanal plot nowadays. Dear forum members kindly update as i am not current on the issue.
Seems like gov has one point economic agenda: Tax people to death
Saadi bahi.
What do you mean when you say.
"withholding tax is adjustable for filers so no issues"
Regards
Also,
It will be really helpful that
-> jab new budget a jawe tou koi banda sari details ko properly summarise kar k sab say share kare.
Regards