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Lahore Real Estate Forum: Property News & Community Talk : ,

(103794)
   manan
Monday, July 4, 2016 05:54 AM 
Reply: >
Dear brother

profit or gain is 120-90 lac= 30 lac

10% of profit=3lac you have to pay while you file your tax return
Tahir Ch. replied on Monday, July 4, 2016 06:55 AM 

Sir g majority are non-filers so what formulla will be implemented on such cases.
ZM replied on Monday, July 4, 2016 07:23 AM 

Dear Tahir Ch,

The 10% tax applies to filers only. Non filers will pay more as compared to filers at the time of transfer. Moreover the CGT will depend on time the property was owned, there is no CGT for more then 5 years.

Thanks and kind regards
ZM replied on Monday, July 4, 2016 07:23 AM 

Dear Tahir Ch,

The 10% tax applies to filers only. Non filers will pay more as compared to filers at the time of transfer. Moreover the CGT will depend on time the property was owned, there is no CGT for more then 5 years.

Thanks and kind regards
Shah® replied on Monday, July 4, 2016 08:10 AM 

brothers, you have an incorrect assumption on the magnitude of problem here.3 lac tax is not that big an issue on a gain of 30 lac.

the real problem is:
almost nobody declares the real value of plot at the time of buying but mention the DC value. So in above example, chances are that the owner never declared the actual price of plot (90 lac) at the time of buying but mentioned the DC rate (which was lets suppose 25 or 29 lac). So the gain FBR is going to calculate for you is not 120-90 = 30 lac

rather it will be
120-29 = 91 lac

on which 10% tax is 9 lac.

and that, dear brothers is the real problem :)
Arif M® replied on Monday, July 4, 2016 08:33 AM 

Shah, I have also been thinking of this. How will determine purchase prices of deals done in past. If they determine it by DC rate then there will be great difference. Which can translate into high amount of capital gain tax.

I wonder what will happen with buyer who has 10 million in hand which he get from sale of a plot. But that plot was sold on DC rate (say amount was 40 lac). So according to FBR only those 40 lac are white. Rest of 60 lac is black money. This is irritating situation. Govt should implement this policy for future. Not past. otherwise there will be too many issues for buyers and sellers.
humayun replied on Monday, July 4, 2016 10:19 AM 

So on purchase deed always write actual amount in which this plot was bought
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