Block taxation on income from sale and purchase of property is abolished by Government of Pakistan. Normal tax is only applicable. Tax exemption on Stock Market Membership for Investment.
The capital gains tax rate on sale of shares has been reduced from 15% to 12.5%. Government of Pakistan has made these changes in Federal budget for the fiscal year 2021-2022. It is proposed to abolish block taxation of property income in real estate sector through proposed amendment in finance and implement normal tax regime. Under which the tax rate on capital gain of more than two crore rupees on sale of immovable property has been reduced.
The tax rate is also being reduced on income above Rs 5 million in terms of interest. In the case of rent, income tax and holding tax on sale and purchase of property have also been streamlined. The limit of gain on tax on sale and purchase of property has been increased to Rs 5 million and tax on sale of property above Rs 5 million will be taxable.
