Disposal of immovable property owned by business section 22(13)(d)
Disposal of immovable property owned by business section 22(13)(d): Currently, clause d of sub-section 13 of section 22 specifies that where, at the time of disposal of depreciable immovable asset, consideration received exceeds cost of such asset, the consideration received shall be treated as cost. This would bring two outcomes:
- Calculation of gain on disposal equals to amount of depreciation claim over life of asset
- Non recognition of gain by an amount by which consideration received exceeds cost
Now the Finance Bill seeks to amend the said clause and now any excess of consideration received over cost of asset shall be chargeable to tax under the head capital gain rather than income from business.
For more information on FBR’s new regulations / circulars/ SROs/ amendments in taxation laws in Pakistan please visit https://www.fbr.gov.pk/