Rizwan sb
If you are opting for DHAs then DHA-3 is better than dha-4, as dha-4 development has been slow in nature. Having said that correction is likely in DHA-3 but it will survive towards profit in near future. DHA-4 development picked up just recently & it’s far located blocks still neglected.
Regarding DHA Valley, Bluebell only residential ballotted plots are ripe for investment, although jump is high but still profit margin exists.
Then come blocks having access from Kalar Sydan double road…Most hot for profit is expected in Oleander then comes Lilly, Magnolia, Daffodil but investment must be only for possession or ballotted plots.
Not all buyers looks only for Islamabad access…Kakar Sydan double road is direct access to Kashmir & a Kashmiri family will prefer this side of DHA than zone-2 or even dha-4.
Just like a Fate Jang side family will prefer zone-2 rather than Kakar Sydan road. Same is true for Gojar Khan family taking interest societies on GT road as close to Rawat as possible.
DHA valley bad time & suffering is over but even possession plots will take time for house construction…6 to 8 months may be …even a year but once house construction starts then. …
A very good profit margin is guaranteed In Shaa Allah.
Thanks Abdul Qayyum sahib for such a precise answer.
Tax amnesty for construction sector is uncertain.
Clickbait headline… This is related to further amnesty and relief for construction. It was a proposal to reduce WHT for contractors which is different.
The current amnesty extension in question is the one related to black money clause. Construction tax amnesty scheme already exists till 31st december this year but the clause to not show source of income exists till 31st June (black money clause). The black money clause is what Builders Association and Economic council wants to be extended and it most likely will.
Well explained, Asad sb
@Asad, Thanks for clarity.
I am also trying to decipher 5% CGT on sale of immovable property and bringing it under normal tax regime. Does this imply that any gain (above 5 million) will be subject to flat 5% CGT regardless of period of holding? And what does normal tax regime mean?
A lot of misinformation regarding this because FBR proposal is worded weirdly (trying to trick govt and people into approving law). What the law change really means is that for gains of upto 50 lac, CGT will be flat 5%. If gains on sale of property are greater than 50 lac, then normal CGT reduced slabs apply meaning the current system where there are four CGT slabs of holding period.
I don’t think it will be approved because it will be a massive hit to builders which in turn means construction industry will go down. PTI government cannot do that because construction is driving current GDP growth. Currently, rifts between FBR and finance ministry are going on because FBR wants to increase tax collection (to meet IMF targets) and finance ministry wants to give tax relief to boost GDP growth. Lets see what Senate committee does but I don’t think it will be approved as Senate committee has already been rejecting a lot of other tax proposals by FBR.
RE CGT bill (Finance Bill-21: Gain on Sale of Immovables or whatever the heck), in a nutshell… Could be a killer if implmenets as discussed.
Forwarded as received! (Audio File)
Imtiaz sb, this is one of those dummy FBR tax proposals… they have been proposing so many taxes and almost all are getting rejected. FBR really doesn’t have much say in this, senate and govt will have last say. I have no doubt that these ridiculous proposals will be rejected because it will be massive loss to builders and construction industry and government will not let that happen because economy and gdp growth will tank.
Don’t trust this Lahore real estate people, the owner is sitting in america and has no idea about situation in Pakistan. He profits off the real estate in pakistan and takes money to america… what’s funny is he was saying in april that government might not even survive 1 week. He just reads speculative and sensational news and then makes big statements, he is sitting in America how can he know what is happening in the country. Almost all his statements have been wrong over last year. He manipulates market for personal use I think. He is a complete liar.
He even deleted his recent market direction video with that audio you posted here. He knew he was wrong. Look every small news and dummy proposal doesn’t need to be taken seriously. I hope LRE owner realises that…
Imtiaz - can you please share the link - the download attachment is not working for me
Asad sb: Your argument is logical. I am not endorsing any individual nor conisdering the bill as an absolute done deal!
The point is, contents of bill and insights in a layman term. I did explicitly mentioned ‘forwarded as received’.
– If he is misquoting, fabricating, falsifying that’s an issue, else he is detailing what the bill proposes.
– Yes, bills get amended but have hardly many bills that been rejected outrightly. Normally it’s a give and take. Some contents probabaly retained, some amended, some removed that’s how it works.
The lot that can Tax Personal Use Device of Pakistan ka Assassa (overseas visiting PAK) can go to any length. Salaried class propsed to be slapped with 10 BN tax, while AWT that’s a pure business entity exempted from Tax.
In our system the Poor/Common Man subsidises the Rich/Elites … Right?
thanks - it did work
An important point is missed here. If bringing CGT under normal tax regime means that it gets clubbed with your income and then slabs apply, then the non-CG portion of your income will also be charged at higher rate. Just think about its implications on those who invest in RE as side hustle and have substantial income coming from salary, rental or business.
Suppose you earn 100k salary per month (1.2m in a year), your annual tax liability would be 30k or 2.5%.
Now suppose in that year you made another 1.2m in CG. Then your combined tax would be 180k or 7.5%. Which means your salary income will also be taxed at 7.5%
We need a tax expert here.
Isloo - I’ve not read the details of the govt’s proposal but usually CG is taxed at one’s marginal tax rate - e.g. if your marginal tax rate is say 30% then you would pay tax at all of your income @ 30% and any CG made during the financial year (after any CG discount if applicable) would be taxed @ 30% as well - this is the most common practice in majority of the developed world
@Arshad right, but it does not bode well with the efforts on incentivizing property sector through Construction package and Amnesty schemes. Our FBR is known to give surprizes, not to increase tax base, but to keep people confused.
I think government’s point is that if you are actively trading in plots/houses then the profit generated from it is considered as your Income not Capital Gains. But if you trade plots/houses not actively then the profit generated is considered as Capital Gains.
If I understood this right then I think that’s this step is in the right direction. Obviously, realtors won’t like it.
The point being missed among the technicalities: For how long the commoner will keep subsiding the elite with their blood and sweat.
@Imtiaz as they say “follow the money trail”, and you’ll know the answer.
Whoever is in power, keeps the resources for themselves. Citizens are gentiles, who are meant to be slaves.
Our Baboo’s are trained in producing clauses & tax narrations, only to confuse the papulace!
They think it’s a speciality of their job to confuse as much as they can & feel proud of doing it.
The one & only rectification is to sack the whole FBR and build a brand new one, which would never happen…