Islamabad: The government has introduced a number of major amendments in the Finance Bill 2019, including changes in how the Capital Gains Tax on disposal of property will be calculated — a news source reported.
Any declaration made under the Assets Declaration Act 2019 will be valid if cash held by the declarant is deposited into a bank account at the time of declaration and is retained in that bank account up to the given deadline
However, this clause will not be applicable to those who do not deposit cash in a bank account by June 30, 2019 on account of it being invested in immovable property or business. Such declarants will instead have to pay a tax 2% higher than the normal tax rate and will provide complete details of the immovable property or business where the said cash is invested
Previously, if a person misrepresented or suppressed any facts, their entire declaration under the law was to be considered void. Now, only the disclosure of that particular asset where the facts have been changed will be considered as void and the rest of the declaration will be treated as lawful
Protection has also been given to those declarants who wish to enhance the value of assets declared in the previous amnesty scheme (introduced by PML-N government in 2018)
Sale
The condition for sellers to obtain CNIC numbers of buyers will now be effective from August 1, 2019. (This may not be fully applicable to real estate, since it is obtained as a part of the agreement in any case.)
Option to pay normal tax on rental income exceeding 4 million, and claim deductions in deriving rental income
The government has withdrawn the 16% sales tax that it had proposed to impose on property dealers involved in the sale and purchase of property in Islamabad Capital Territory
