New Rates Of Property Tax Implemented | Property Tax Increased | English Subtitles

New Rates Of Property Tax Implemented | Property Tax Increased | English Subtitles


Assalam O Alikum Friends! Welcome to Choti C Talk. FBR has changed the tax rate on property In the Finance Bill 2019. Earlier, The property value was raised Beginning with 18 cities. Now the tax rate has been Implemented in accordance with The new property valuation Starting July 1st, 2019. You probably heard on some channels That there is a good news For property business That tax rates have been reduced. I request you to watch the video till end And decide yourself, whether The tax rates are reduced or Raised instead. Let’s begin with capital Gain Tax. To understand what is capital gain, Assume that you bought a property For Rs 1000000 and then sold For Rs 1200000. The gain of Rs 200000 Is called Capital Gain. Tax is charged on this gain. In the old system, You had to pay 10% of capital gain If you sold your property In the first year of purchase, 7.5% in the second year, And 5% in the third year. There was no capital gain tax, If you sold your property After 3 years. In the new system, The capital gain will be added In your total taxable income Like your income from salary or business And the normal tax rates Will be applied. FBR states the reason behind this As to introduce Equal taxation And to avoid tax evasion. Now for the constructed property, If it is sold within 1st year Of purchase, The full amount of Capital Gain Will be added in the Taxable income. If property is sold between 1 to 5 years Of purchase, 75% of Capital Gain Will be added to taxable income. No capital gain will be added If property is sold after 5 years. In case of a Plot, Full capital gain will be added To taxable income If sold within 1st year of purchase, 75% of Capital Gain If sold within 1 to 10 years of purchase, And no capital gain Will be Added If sold after 10 years. Simply, If you buy a plot, You have to pay capital gain tax, If you sell it within 10 years of purchase. Previously, It was a 3 years threshold. If you used to sell your property After 3 years, No capital gain tax was charged. You can understand now That the time period for Charging capital gain tax has increased. So now you will pay tax On your capital gain For upto 10 years of purchase As compare to 3 years In the old system. Let’s talk about Withholding Tax. In old calculations, Seller used to pay 2% Of the recorded sale value if He sold his property Within 3 years of purchase. Now the rate is reduced To 1%, But time period has increased To 5 years. So now if you sell your property Within 5 years of purchase, You have to pay 1% withholding tax On the recorded value. Again, The rate is reduced, But the period for calculation Of Withholding tax Has been increased From 3 to 5 years. As for Buyer, The withholding tax rate is also reduced to 1%. But there is a catch. There was no withholding tax If the purchasing amount was Less than Rs 4 Million. You only had to pay withholding tax If you bought a property worth of 4 Million or above. Now the tax rate Is reduced From 2 to 1%. But you have to pay Withholding tax Irrespective of the purchasing amount. So if you buy a property For Rs 1200000, You will pay Rs 12000 As a withholdign tax At the time of purchase. Now let’s take a look On the total taxes payable At the time of purchase. There are two provincial taxes At the time of purchase, 2% Capital Value Tax And 3% Stamp Duty. Now add 1% withholding tax, The total tax payable upfront Will be 6% of the FBR value. In the example, For the purchase of Rs 1200000, The total tax amount, That used to be Rs 60000, Now after adding 1% withholding tax, The tax amount will be Rs 72000. I hope you can Figure out now The story behind The reduced tax rates. No doubt WHT is reduced to 1%. And for those Who will buy a property Worth of 4 Million and above, The total tax will be 6% Instead of 7%. But for the one, Who is purchasing a property For less than Rs 4 MIllion, The total tax rate will be 6% Instead of 5%. Remember that, Withholding tax is like An advance tax Or a tax withheld, And it is adjustable With other payable taxes. In other words, The withholding tax will be credited In the total tax amount When you will file your return. Though you will be credited But you have to pay it At the time of purchase. That wasn’t the case In the old system. But now it is implemented. Note that there is no diffrentiation Of Filer and Non-Filer In the new tax rates. Both have to pay 1%. That’s because of new rules. The purchasing ban on Non-Filers is removed But they have to File Their tax return Within 45 days of purchase. So if you are a Non-filer, And purchase a property Eventually, you have to become a Filer. That’s why the rate of Witholding tax is kept At 1% because There is no difference Regarding Filer And Non-Filer. Please keep in mind that Now you can buy A property with cash for upto Rs 5 Million only. If you purchase a property For more than Rs 5 Million, You will have to pay via Crossed cheque or a bank draft. In other words, There must be A bank to bank transfer. Failure to do so Will result in a penalty. And a fine equal to 5% of the market value Of property will be imposed. So that’s all the story About the so called “Good News” Of reduced tax rates. You can easily understand that You will have to pay More tax when you combine it with the provincial taxes. In my personal opinion, The tax rate for the buyer Should not exceed 2% Especially when you have raised The property value for tax calculation Closer to the market value. The total tax payable should be 2%. 1% for FBR and 1% for the Province. For the tax calculation, You can charge it On the market value But it any case, The rate shouldn’t exceed 2%. On the other hand, The government should take Strict action against The unreported transactions And take necessary measures To document The property business. As for the Withholding tax on seller, It should be withdrawn. There should be No tax related restriction On the seller based On the time period. Its should be seller’s choice. Whenever he wants to sell His property, He should be free to do so. As for the Capital Gain Tax, It should be imposed on seller, Either as a percentage, Or by including it In the taxable income. But either way, The Capital Gain Tax should only be imposed If the Seller doesn’t reinvest The money in property Or in any other business In the given Tax year. In short, the seller Should be encouraged To reinvest his money In property or any other business In the same tax year To avoid the Capital gain tax. So guys, that’s my opinion About the taxation on property. It’s quite obvious that The new rates will increase The total amount of tax For both buyer and seller. And it won’t be a good sign For already suffering Real Estate sector. So the tax rates On the provincial level Should be reduced To let the Real Estate industry To thrive. Its my opinion by the way, And you have right to differ. And If you have yours, Please express it in the comments. Like and Subscribe to Choti C Talk. Take care and Allah Hafiz

56 thoughts on “New Rates Of Property Tax Implemented | Property Tax Increased | English Subtitles

  1. Sir app say sawal phochna tha

  2. App apna whatsapp number bata dain

  3. Tax Rebate par video bana please, mobile , PTCL telephone tax rebate etc…

  4. kindly advise regarding overseas relatives having constructed properties in their names on Pakistan but as non-filers… agr woh log filers na bn payein tou is surat mein in properties pe koi tax ya penalty hoga ya nhn…??

  5. started watching ur videos from last few days… amazing content… easily expalined… love the whiteboard approach.. keep up the great work… shayad ye bhe sadqa e jariya e sabit ho ap k liye.. JazakAllah

  6. Ager meray gher ki power hay meray pass tu iski regestory mai kiya charge huga?

  7. bhai capital gain tax nahin hai partnership hai yah istarh to ovesers kabhi bhi na khrede ga

  8. bhai ap se milna hy

  9. Good job dear

  10. Bahi overseas ke liye bhi same rules hain.

  11. I consider it very good.

  12. 120 yards constructed plot pre kitna Tex hey?

  13. Assalam o Alaikam bh jaan Maine 40 lakh ka ghar liya hai mujhe kitna tex lage ga or ye meri first property hai plz answer me

  14. You should NOT be giving your advice in the end of the video!
    Your opinions are biased towards Real Estate Industry and money laundering!

  15. Open files selling of plot caused these strict rules.

  16. Gawader mae 1000 sq yds agar 2004 mae plot book kia ho or possession 2013 mae lea ho or abhi tak gwda maen leased nahe howa ho. Tou as a non resident property declare karna hoga.

  17. Aoa plz make more more videos on current affairs

  18. Jazakalah for such outstanding way to rationalize

  19. Bhai hum jis flate mai rahte hai woh hamari walida ke naam par hai aur woh intiqal kar chuki hai tu kya is par bhi koi tex hai

  20. Market value ka mafia tou ab b wese ka wesa hai….. phr DC value pr market value tou ni ayi na…. Yani DC value tou bareye name he hai…. Bs 5 se 7 lakh rupey laga diye gaye hain…. Mgr time period barha dia gaya hai….. Stupid policy ….. Tax rate is good but time period badly effects real estate business

  21. Aslam. Bhai mare one shop ha Jo 2007 ma le ha. 18 lack ke le ha Market band ha close ha is pa kitna tax ha. Size 10*11. ki ha

  22. wsalaam. great .. thx for info///

  23. Assalam o aliycum.
    Bhai property cash per nahi khareed sakty .
    30 lakh tak .
    Bank draft lazmi hy kiya ..please answer me .

  24. Aslamu Alikum,
    Very helpful but little bit confused just need to ask a question,
    I need to buy a home of amount 65 lac,
    DC value of that region of that plot is 15 lac.
    What would be the total tax applied to me?
    6% of 65lac as per my understanding after watching your video

  25. Bhot accha hua satta ab nahi ho ga thanks god

  26. Brother already property is very expensive and govt. of Pakistan is looting money from all sides yeh rules world main kahin bhi nahi hain aur jo cheese world main nahi woh paki main hotti hy😇.

  27. AOA,KIA PLOTS KI FILE JO PURCHASE KI HO WO INCOME RETURNS OR ASSET DECLARATION MA SHOW KARNA REQUIRED HEIN KA NAHI, PLEASE GUIDE.

  28. Roads totay photay gatter obeltaiy hovaiy taleem aur sehat naqis aur mehgi koi social security nahi bait ul maal aur zakat fund pr bhee daka phir indirect tax ki bharmar iss k bawajood besharmi sai tawan ki tarah tax wasool kiya ja raha hai

  29. Agriculture land ka kia hissab ha pllz tell me bro

  30. App ne teek kaha, business pehley sey kharab hein.
    ALLAH TAHALA, apna reham karey. Ameen suma ameen

  31. گے l anti hakumat

  32. Thanks but will u please stop comparing previous taxes. Just tell us latest

  33. Sir ma 3 saal pahly plot lia tha jo 8 lack ka tha ab wo plot 13lack ka ha. Os py construction 25 lack ke ke ha ab ab agr osy ma 45 lack ma baichta tou mujy kitna tax lagy ga. Plz ans.

  34. kia wirasti jaidad pe bhi seller ko kui tax dayna hoga??

  35. I agree with you on proper selling and buying transaction should be completed on the spot without writing on stamp papers which results in latigation in the court between the heirs of the sellers and purchasers.
    This will decrease the burden of cases in the courts

  36. I had 5 DHA Bahawalpur files fully paid but DHA did Fradulant Balloting and gave me all the Worst possible locations for all 5 plots. I got not corner or wide road of 60,80,90,100,150,250 ft or facing park out of all 5 plots. All 5 got only Narrowest 40ft Road 🙁 .
    Would never buy dha or invest in DHA.
    Huge Loss in DHA.

  37. Sir property pe sale tex bhi hota ha? مطلبmery abu ny 10 sal pehly ek plot liya tha 4 lack ka aur 10 saal bad sale ker diya 70 lack ka aur humara ntn bhi ha kiya humain bhi fbr waloon ko koi tax dena pery ga ager dena ha to kitna?

  38. Are you sure CGT will be added in taxable income

  39. New property valuation tables not implemented

  40. Get your information correct

  41. Don't make videos with mistakes

  42. Agar kahandani jaidaad bichna ho to us py kitna tex ho ga tell me sir

  43. Sir,
    I am a non filer citizen i wanna to purchase property of Rs. 880,000. How many Tax i will pay to FBR?
    One percent or Two percent?
    Please reply

  44. Aslam u Alakum
    Bahi menay 2011 mein 1 kanal plot puchase kiya tha kiya us pay tax ha ?
    Please reply

  45. A.o.A sir ap ka koi office b hai kiun k me ap se milna chahta hon ya ap no muje dyen ya mere is no par contect kat dye me apny case k bary me ap se discus karna chahta hon

  46. Aoa sir my home is 7 year old and fbr immovable property rate of that area is 3 lac 35 thousand and 500 per marla mention on website house is 5 marla so if i sell this so how much tax percentage apply on it kindly tell

  47. Sir m krachi plot khridon ga jis ki kimat 4 lak he 120 gaz ka os ka tax bany ga ya nhi

  48. Islame banks mezan ki le seving account per video bano

  49. Very good information 👍
    Sir gift deed ka pochna hai ke ke ek Bhai apne property apne behan or behnoi ke name transfer krwana. Chahta hai tu us per koi tax tu nhi ho ga . Or behnoi filer hai
    Lakin transfer gift ke through krne hai

  50. میں اگر ایک شخص سے پراپرٹی خریدوں اور بیچنے والا دس سال کے بعد بیچے تو اس پر کیا ٹیکس ھے اوپن پلاٹ پر

  51. Very nice to educate the peoples, Kindly make some video information and procedure about transfer your immovable property to your sons, daughters and wife. waiting
    for.

  52. 50 lakh say oper ho tou jis say buy kar rahay hai us k naam ka check day saktay hai jo wo cash karwa sakay?
    Ya check bhi bank to bank he hona chahiyai?

  53. Sir yeh property tax to nahi hay bulkay property k sale aur purchase pur registered kurwanay k govt k taxes hein .

  54. sir online apna property tex kasy dakhy kitna ay hai

  55. i want to ask something ..

  56. Salam bhai agar koi apna flate kharidne ke aik saal baad bachta hai aur is ki velu is waqt 42 lacs hai tu is ko total kitna tex dena hoga

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