Islamabad: The federal government has directed local police authorities to submit record of rental properties to curb any possibility of tax evasion on rental income in the capital city – a news source reported.
The government has imposed taxes on the rental income received from both commercial and residential buildings in its recent budget announcement. For this purpose, it has directed the officials concerned to compile the data starting from the current fiscal year to ensure that no tax evasion occurs.
In the first phase, the data for Karachi will be obtained. Instructions have been issued to the Station House Officers (SHOs) of all local police stations to send in the records of all commercial and residential buildings along with their rental agreements to the federal government.
Under the budget, new slabs of rental income have been introduced for taxation.
Now, for annual rental income falling between PKR 4 million and PKR 6 million, a fixed tax of PKR 610,000 will be collected. In addition to the fixed tax, additional tax at the rate of 25% will be collected for the income above PKR 4 million.
For annual rental income falling between falling between PKR 6 million and 8 million, the fixed tax will be PKR 1.1 million, with additional tax at the rate of 30% for the income above PKR 6 million.
For rental income equal to or above PKR 8 million, the fixed tax will be PKR 1.71 million, and the income above PKR 8 million will be taxed at a rate of 35%.
