in summary, considering that FBR will increase DC rates to say 250% & hold period above 1 and less than 2 years, the CGT of filer will increase from 5% in past to 14% in current (75% x fair market which is 2.5 times of DC ratex7.5% = 14%) so net effect is 9% on old calculations based on purely DC rates. For filer advance tax shall be adjustable so still finally the net effect will remain 9% as above + some effect of WHT.
For a non-filer (considering he manages not to become filer somehow), he will not pay CGT but he will have to pay advance tax and that will not be adjustable as he will not file return. Advance tax will increase from 2% to 7.5% in current calculations (75% x fair market which is 2.5 times of DC ratex 4% = 7.5%) so net increase for non-filer will be 5.5% only. Non-Filer seller will be winner in this case (if he manages to remain as non-filer)
Kureshi® replied on Tuesday, August 2, 2016 06:13 AM
Shahzad , thank you for sharing the calculations.
Looking at such discussions and calculations , a weak hearted investor will say good bye to property investments.
Most of rhe people in this business are not finance and tax experts and I wonder when will they feel comfortable to get back to business as usual. |
ShahzadQamar® replied on Tuesday, August 2, 2016 06:43 AM
In case of Phase-9 considering above data (if buy now sell next year after 1st July but before 30 june 2018), the NET INCREASE for Filer tax will be ~ 280,000 and for non-filer tax increase will be ~ 180,000 over and above last year taxes. I think in Prism where rates go up sometimes more than 1 lakh per day, such tax increase will not have any major impact and Market will further gain from now onwards. |
User_6006® replied on Tuesday, August 2, 2016 08:19 AM
houses in dha a kanal going to be 7 crore , and wapda town 5-6 crore . fbr related person said consider fbr evaluation more than dc and market value, minimum 1-2 crore for kanal , 50-100 for 10 marla 25-50 for 5 marla from market , how buyer and dealer will cop with it ? |
User_6006® replied on Tuesday, August 2, 2016 08:19 AM
houses in dha a kanal going to be 7 crore , and wapda town 5-6 crore . fbr related person said consider fbr evaluation more than dc and market value, minimum 1-2 crore for kanal , 50-100 for 10 marla 25-50 for 5 marla from market. |
