ISLAMABAD: Finance Bill 2024 has proposed a flat rate of 15 percent on gain from disposal of immovable property acquired on or after July 1, 2024.

Explaining the Capital Gains Tax on Immovable Property, a tax expert stated that the Capital gains on disposal of immovable property are presently taxable at varying rates up to 15% depending on holding period and the class of property (open plots, constructed property and flats).

Immovable properties disposed after specified holding period are subject to 0% tax. There is no change in capital gains tax regime for properties acquired before July 1, 2024.

A flat rate of 15% is proposed on gain from disposal of immovable property acquired on or after July 1, 2024, by persons appearing in ATL on the date of disposal, regardless of the holding period. For persons not appearing in ATL, progressive tax rates on income with the minimum tax of 15% have been proposed.

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Tax expert further stated that a uniform rate of 15% proposed on capital gain on disposal of securities as well as on immovable properties which are acquired on or after 1 July 2024 for the persons whose names are appearing on the ATL. Whereas for persons who are not on the ATL at the acquisition and disposal dates, capital gain proposed to be taxed as normal income subject to minimum tax rate of 15%, he added.

Copyright Business Recorder, 2024