11/07/2023
After an increase in withholding taxes on buying and selling of immovable properties from July 1, 2023, the Federal Board of Revenue (FBR) would now also raise valuation rates of properties with effect from August 1, 2023.
In this connection, the FBR would complete an exercise in consultation with the provincial authorities by the end of the current month.
Sources informed that the revised rates would be notified by the FBR whereas the number of cities would also be increased from 42 to 51.
Presently, the FBR fixed property valuation rates are applicable in more than 40 cities/ towns of the country including Abbottabad, Attock, Bahawalnagar, Bahawalpur, Chakwal, Dera Ismail Khan, Dera Ghazi Khan, Faisalabad, Ghotki, Gujranwala, Gujrat, Gwadar, Hafizabad, Haripur, Hyderabad, Islamabad, Jhang, Jhelum, Karachi, Kasur, Khushab, Lahore, Larkana, Lasbela, Lodhran, Mandi Bahauddin, Mansehra, Mardan, Mirpurkhas, Multan, Nankana Sahib, Narowal, Peshawar, Quetta, Rahimyar Khan, Rawalpindi, Sahiwal, Sargodha, Sheikhupura, Sialkot, Sukkur and Toba Tek Singh.
Now, the valuation tables of all these cities would be revised upward in the range of 13 to 15 percent, while new nine cities/ towns would be added to the valuation tables’ list with effect from August 1, 2023.
From July 1, 2023, the rates of withholding tax under sections 236C (Advance Tax on sale or transfer of immovable Property) and 236 K (advance tax on purchase or transfer of immovable property) have been increased.
The rate of withholding tax for filers of income tax returns has been increased from 2 percent to 3 percent under section 236 C (Advance Tax on sale or transfer of immovable Property).
The rate of withholding tax for non-filers of income tax returns has been raised from 4 percent to 6 percent under section 236 C (advance tax on sale or transfer of immovable Property).
The rate of withholding tax for filers has been increased from 2 percent to 3 percent under section 236 K (advance tax on purchase or transfer of immovable property).
Details revealed that the rate of withholding tax for non-filers has been further raised from 7 percent to 10.5 percent under section 236 K (advance tax on purchase or transfer of immovable property).
Under the Finance Act 2023, by virtue of amendment made through the Finance Act 2023, changes have been made in the rates of advance income tax collected under sections 236C and 236K of the Income Tax Ordinance 2001.
EIF
As per FBR’s field instructions, under section 236(c) of the rate of advance tax would be 3 percent for filers and 6 percent for non-filers.
The new rates under section 236K, the advance tax at the rate of 3 percent would be collected from filers and 10.5 percent from non-filers.
