We all know that the real estate sector is one of the most popular and profitable investments with a lot of potential for success. In all over the world, people earn money from construction work. It creates a lot of opportunities.
The shift of policies and priorities is visible in PTI’s government progress.
People expecting quick results might not anticipate this change but gradually things are improving for different business sectors in Pakistan. Today we have Mian Wahaj a real estate consultant from Lahore who is explaining the key points of budget 2019 for the real estate sector in Pakistan.
There is no difference between non-filers and filers. The non-filers can purchase properties upto 5 million, and if they exceed from this amount they will automatically become filer in FBR system. It is a fact that PTI Government has improved our departments for the betterment of our country.
In the past, some people create an artificial market by involving their black money in this sector to fluctuate the prices of real estate properties but now it could not be possible. This budget is beneficial for end users.
The government will now take tax on the current value of the real estate property. Previously, it was not like that. We are using some old calculation method which is not suitable for the landlords and they avoid to give tax on the property.
All transactions of real estate business will be recorded through the bank.
Due to this act, illegal transactions could not be possible from now. It will pure the real estate business. Infact this system is useful for investors as well as for real estate agents.
We must have to accept the efforts made by our Government in such a short time. We must have to support our Government in this situation.
FBR reduces tax on the sale of immovable property
The Federal Board of Revenue (FBR) has decided to reduce the rate of tax on the sale of immovable property.https://www.geo.tv/latest/241717-fbr-decides-to-reduce-duration-percentage-of-property-tax
The tax body has exempted the real estate sector from paying Capital Gains Tax on sales of open plots after ten years.
At present, there is no tax if the property is held for more than three years. However, if the property is sold within three years a property tax will be imposed.
According to the report, there will be no tax imposed on a house or a flat if sold after four years, however, a five per cent tax will be imposed on the property worth Rs5million if sold before four years.
After June 30, 15 per cent tax will be imposed on property sold within 10 years of ownership.