Punjab : Capital Gains Tax Rates Revised

[Salman]

The Punjab government has come hard on rich and mighty levying heavy taxes on the rich living in the posh localities of the city through Punjab Finance Act 2013 imposing Rs 0.5 million to Rs 1.5 million one-time luxury tax to houses measuring two kanals and above.

It has been proposed to charge, on one time basis, luxury tax on A Category houses measuring two kanals and above. Tax will increase with increase in the size with maximum limit of Rs 1.5 million for houses of eight kanals and above.

Moreover, according to the Finance Bill tabled on Monday’s budget session in the provincial assembly, the government has also levied Capital Gain Tax of one to five percent on the sale of property sold during different periods of time after its acquisition.

The tax on houses will be payable in four installments within a year commencing from July 1 in four equal installments before the expiry of each of the four quarters of the year.

Where an installment of the luxury tax is not paid within the prescribed time, surcharge equal to two percent of the outstanding tax per month shall be paid and where surcharge is paid during a month, the surcharge shall be prorated on daily basis for the days of the last month in default.

The tax levied under Subsection (1) shall be paid on one time basis provided that where a taxable house is constructed after the commencement of this Act, the luxury tax shall be likewise paid on one time basis within one year of the completion of construction of such house. - See more at: http://www.pakistantoday.com.pk/2013/06/...igqBZ.dpuf