ISLAMABAD: The federal government has decided to impose federal excise duty for the first time on the sale of real estate properties from July 1, 3 percent for filers and 5 percent for non-filers on allotment and transfer of property in the federal budget. Tax (FED) has been levied.
The finance bill approved by the National Assembly will come into effect from July 1 after the signature of the President, under which 3% FED will be levied on any products introduced by builders and developers, while commercial plots 3% FAD is levied on sale and if the seller is a filer then 3% FAD will be given.
Sources say that on application of Finance Act 2024, the seller will pay 5% FAD if he is a late filer and the seller will pay 7% FAD if he is a non-filer.
FBR sources further say that Rs 5 lakh capital value tax on farmhouses under Seven E in Islamabad, Rs 5 lakh CV on sale of farmhouses and houses from 2000 to 4000 yards in Islamabad. T will be imposed.
A capital value tax of 1 million will be levied on the sale of farmhouses and houses larger than 4,000 yards in Islamabad. 10 lakhs on residential houses of one to two thousand yards and Rs 15 lakhs on houses larger than two thousand yards, while sale of immovable property for serving and retired federal and provincial employees, armed forces and war wounded. And advance tax on death has been abolished.
For association of persons, income tax has been reduced from 45 to 40 percent for those earning more than 56 lakhs, but 10 percent head charge has been levied on income tax for those earning more than 1 crore per annum.
Builders and developers have also been brought into the tax net in the budget, with 10 to 15 percent tax on the amount earned for taxable builders and developers, 10 to 15 percent on taxable income.
