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HassanHC�

Saturday, July 30, 2016 08:33 PM

Very good outcome. I had many friends on fence who want to buy as
1 transparency. We know what to pay at
2 all old transactions are safe older then 3 yrs
3 rates are reasonable as 5% by 3rd yr
4 Lahore is getting so much infrastructure mega projects so paying tax on profit is fair and it is reasonable
5. This is on gains if next year rate up only then you will give tax of your gain. It is not flat tax.
6. Less then 40 lacs all 5 Marla plots big gainers. Sell and buy them as much as you want.
7. Now all transactions will be transparent no state bank values
8. I listened Ishaq Dar conference and frankly I dint imagined they will give in that much and that soon.
9. Over all neat clean and transparent development
10. Investors want clarity and they got. Rest tax on gains all over the world ppl pay lot higher then this
11. London you pay 28%. Canada where I am 25%.
12. Thanks to Allah

HassanHC� replied on Saturday, July 30, 2016 08:37 PM

CMY Saab get ready to be busy again. Inshallah coming in September need 1 more plot was waiting for market clarity. My friend is in Pak and with money in hand was sitting on fence as no clarity. Now inshallah will Watsapp him and tell this news as his flight back is August end. So he can buy with confidence.
Ishaq Dar said on Monday inshallah he will introduce legislation also.

HassanHC� replied on Saturday, July 30, 2016 09:05 PM

Ishaq Dar also told a very good news.
No special audit or scrutiny FBR as in past will do same. Neither increase or decrease. Same policy as old.
Also all older properties older then 3 yrs prior to this law need to pay no tax.
Old money is neither black nor white.
Business as usual if plot bought 3 yrs ago if with in 3 yrs and selling then only 5% of gain.

Also Ishaq Dar said in Lahore property value was close to DC and it was not as bigger gap as they thought.

Ishaq Dar said we are worried for overseas Pakistanis and we need there remittances so we made it very transparent process. Now capital will come to Pak and not fly.

Surfer� replied on Saturday, July 30, 2016 09:31 PM

@ Hassan i think now property will on the rise again & your friend will now pay more if delayed to due huge Infra struture. Now is the situation don't delay just buy.
Yes its good news for all of us & Market comes alive again "In shaa ALLAH"

FAA.awan� replied on Saturday, July 30, 2016 09:54 PM

As I told a few days before,govt cannot afford to stop real estate sector because of many hidden challenges.Try to understand DHA and other strong stakholders and builders' power.Now a good news for investors and property lovers.5m and 8m plots' price can jump within this month so far my sources are. As 40 lac amount is above any tax,good for small investors.

HassanHC� replied on Sunday, July 31, 2016 12:47 AM

Ahmad Saab within one calendar year

July1 2016. To. June 30 2017

You can sell as an investors unlimited times with no gains as prices will be revised every calendar year plus with discussions and input from stake holders Ishaq Dar repeatedly said he will listen to all in future.

Also this gain tax will only be paid when you file tax and then can deduct commissions other taxes and WHT etc.

All in all reasonably documented society and same old FBR what they were doing previously same officers still there. No one here was asking previously and no one ask still. Ishaq Dar said he wants system to run and has fixed uncertainty and no one will be harassed now.

AHMAD HASSAN� replied on Sunday, July 31, 2016 01:14 AM

Dear Hassan, thanks for clarification. But if one is doing unlimited transactions & not a filer too then one is converting white money to black only. I think this will be hard now that one earn millions and FBR keep eyes closed. That means Dar SAAB was only wasting time and money till today. PHIR TOO DAR SAAB NAY JHAAK HE MARI THEE.:) Well we all hope & pray for good. Amensity will not be announced again & again. we should document our transactions in future

HassanHC� replied on Sunday, July 31, 2016 03:12 AM

Ahmad Saab within one calendar year you can mention on transfer time rate list of july1st 2016. This way you are transferring on FBR rate and will be legal as from

July 1st 2016. TO. June 30 2017.

As within one year rate list will be constant but on July 1st 2017 new rate list and if it is higher then last year then on difference of that when you will file tax you will pay on gains less all transactional cost of stamp, CVT, commission to agent, society charges etc.

Yes all in all ISHAQ DAR made a big hype and eventually overseas money and flight of capital to Dubai scared them and they are relieved to solve a self created problem.

Nabeel� replied on Sunday, July 31, 2016 03:42 AM

What about Advance Tax for buyers...Is it correct that it has gone up to 4% for buyers who are non-filers? (Most people are still non-filers)

AHMAD HASSAN� replied on Sunday, July 31, 2016 04:06 AM

Dear Hassan Bahi, here confusion starts. Now I give you a case study. For example FBR value is 50 LAC but I purchase a plot in 70 lac. Since am overseas Pakistani like and this will not be problem to provide source of money at this stage. Assuming am very lucky and I am able to sale in 90 lacs within fiscal year. FBR value is still same and what I am getting from your or CMY point of view is that ask buyer to give you PO equal to FBR value and rest either cash or second PO. Technically I am not liable to pay 10% CGT because FBR value is same but same time am also converting 20 lac of capital investment and 20 lac of profit into black money. But if am very afraid from FBR & honest and put orginal buying and selling values. It will set reference for next year FBR values. This will also make hard to find buyer because next buyer has to provide source of income of my selling price. Please now give your analysis.

HassanHC� replied on Sunday, July 31, 2016 04:39 AM

Ahmad Saab yes generally within one year mention official FBR rate and zero gains tax liability.
But yes in second scenario if you declare true actual you will pay tax on difference of it as gains tax . But if you don't declare higher value then you have to keep it on the side like it is now or forever in Pak it is or was like that always so not new from real estate perspective.
Last part you asked if buyer will mind plot at higher value. No he will not mind as FBR has no concern to individual buying at more price then that as they will use there list anyways to calculate the difference.
Basically FBR and Ishaq Dar encourages ppl to use there rate list. Rest they are least bothered on what actual rate the transaction closed as long as it meets the threshold set by them.
They have made a standardized form just like DC was but higher value. But like DC this will be out of touch with actual transactions but more easy and simple. Pakistani culture tax style.

AHMAD HASSAN� replied on Sunday, July 31, 2016 04:48 AM

ایک دفعہ کا ذکر ہے کہ دوسری جنگ عظیم میں ایک گاؤں کے نمبر دار کو فوجی بھرتی کر نے کا پیغام ملا۔ نمبردار نے بہت کوشش کی مگر گاؤں سے کوئی نوجوان لڑنے کے لئے تیار نہیں ہوا۔ آخر نمبردار نے ایک طریقہ سوچا اور سب نوجوانوں کو یہ بول دیا جو بھی حامی بھرے گا وہ ٹریننگ کے بعد کمیشنڈ رینک آفیسر کی ترقی پائے گا اور اس کی نوکری بھی پکی ہوگی ۔ بس پھر پورا گاؤں ہی تیار ہوگیا۔ سب نوجوان کے سے نمبردار انگریز ڈپٹی کمشنر کے دفتر حاضر ہوا اور نوجوان دفتر سے باہر انتظار میں بیٹھ گے۔ کافی دیر کے بعد نمبردار ڈپٹی کمشنر کے دفتر سے برآمد ہوا اور نوجوانوں کو خطاب کرتے ہوئے کہا۔ بھائیوں میں نے آپ کے مطالبات ڈپٹی صاحب کے سامنے رکھے مگر وہ نہ مانے۔ لیکن میں نے بھی ہمت نہیں ہاری اور اپنی بات پر اڑ گیا ۔صاحب نے کمیشنڈ آفیسر والی بات تو نہی مابی آخر کار ان کو میری یہ بات ماننا پڑی کہ نوجوانوں کو ٹریننگ بھی فری میں دے گے اور ٹریننگ کے بعد تنخواہ کے علاوہ وردی اور کھانا فری ملے گا ۔ بس پھر� کیا تھا نوجوانوں بے جوش میں آکر نمبر دار کو اپنے کندھوں پر اٹھا لیا۔

Now am afraid that similar not happen with us. Market leaders can declare this a big success just to break lock down. :)

Hussain replied on Sunday, July 31, 2016 05:09 AM

Guys - capital gains tax has always been there so the short term investors have always been dealing with it. The only changes vs last year are

1) change in values - 20-30% increase in residential DC value; 200-300% increase in commercial DC value (which will still be massively undervalued compared to market prices)

2) change in capital gains tax period from 2 to 3 years!

So all is good and you will see the market back on track shortly IA

Regards