The income from property is now taxable as part of total income at normal rates as provided in the Income Tax Ordinance, 2001. The income tax circular 6 of 2013 issued on Friday said that prior to Finance Act, 2013, income from property was taxed as a separate block of income at prescribed rates. Through Finance Act, 2013 income from property is now taxable as part of total income at normal rates as provided in Division I of Part-I of the First Schedule to the Income Tax Ordinance, 2001.
Deductions in computing income chargeable under the head 'Income from Property' shall be allowed as per the provisions of Section 15-A. The rates for withholding of tax on income from property have also been amended. Through Finance Act, 2013 section 113A has been substituted. The substituted section 113A now provides that where a person derives income from the business of construction and sale of residential, commercial or other buildings, such person shall pay a minimum tax on income from the sale of residential, commercial or other building at the rates to be notified later. The mode, manner and time of payment of such amount of tax shall be notified.
Through Finance Act, 2013 section 113B has been substituted. The substituted section 113B now provides that where a person derives income from the business of development and sale of residential, commercial or other plots, such person shall pay a minimum tax on income from the sale of residential, commercial or other plots sold at the rates to be notified later. The mode, manner and time of payment of such amount of tax shall also be notified.
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