Home » News » Govt. Reduces CGT & Tax Rate On Immovable Property In The Budget FY 2020-21

Govt. Reduces CGT & Tax Rate On Immovable Property In The Budget FY 2020-21

The holding period for taxation of capital gains on disposal of immovable property is being reduced to 4 years.

There will be no tax on the income emanating from the immovable property if the buyer sells it after four years from the date of purchase. “The maximum (duration) for availing tax exemption is being reduced to four years from eight years,”

Real estate related specific Budget Reliefs

Besides, the rate of capital gains tax (CGT) on the sale of property will be reduced by 25% each year.

The FBR also proposed reduction into Capital Gains Tax (CGT) on real estate from possessing period of 8 years to 4 years and the rates also reduced from 5 to 2.5 percent, from 10 to 5 percent and 12.5 to 7.5 percent.

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