Tax on sale or transfer of immoveable property section 236c & 236K

Tax on sale or transfer of immoveable property section 236c & 236K: These sections deal with the tax on collection of tax from Seller and Buyer on sale and purchase of immovable property and tax so deducted is adjustable tax except the fact where property is sold in the same year of purchase, in which case the tax deducted would-be minimum tax for seller.

However, in this connection the Finance Bill has proposed that if the Seller or Transferor and in other case Buyer or Transferee is a Non-Resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who had acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA) maintained with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan, the tax collected under this section from such persons shall be final discharge of tax liability.

Furthermore, in the case of seller this tax would be collected in lieu of capital gains taxable under section 37 earned by the seller or transferor from the property so disposed of which means in that case seller would not be subject to tax under section 37 and tax deducted under this section would be treated as a Final Discharge for the person.

For more information on FBR’s new regulations / circulars/ SROs/ amendments in taxation laws in Pakistan please visit https://www.fbr.gov.pk/

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