Income Tax
Tax on Property Purchase, Sale & Rental Income
Property transactions in Pakistan attract advance income tax on both purchase and sale, generally calculated on the FBR's notified valuation or the declared value, whichever applies. Non-filers pay higher rates. Gains on disposal and rental income are taxable. Tax Services PK advises before the deal and files the related returns so you pay only what the law requires.
Who needs it
Who is this service for?
- Buyers and sellers of plots, houses and commercial property
- Landlords earning rental income
- Overseas Pakistanis dealing in property
- Anyone who received an FBR notice on a property transaction
Our process
How it works
Pre-deal review
We check your filer status and the applicable valuation.
Tax estimate
We estimate advance tax and capital gain implications.
Documentation
We make sure the source of funds is supported in your wealth statement.
Filing
We report the transaction correctly in your return.
Checklist
Documents required
- Sale / purchase deed or allotment letter
- Property location and area
- Source of funds documents
- Previous wealth statement
What we handle
What's included
- Advance tax calculation
- Capital gain computation
- Rental income returns
- Source-of-funds documentation
FAQs
Property Tax Advisory: frequently asked questions
Is tax charged on both buyer and seller?
Yes. Advance tax is generally collected from both the purchaser and the seller at the time of registration or transfer, at rates that depend on filer status and value.
Which value is used to calculate property tax?
The FBR notifies valuation rates for immovable property in major cities. Tax is computed under the applicable provisions using the notified or declared value as the law requires.
Is rental income taxable?
Yes. Rental income is taxable and must be declared in your return. Tenants that are companies or prescribed persons may deduct tax at source on rent.
Need help with property tax advisory?
Talk to a tax consultant with 30+ years of experience. Call or WhatsApp us today.