CGT for Non Filers

Question

Assalamualaikum 

I purchased a residential plot for PKR 2.2 million on 05-Dec-2015 and built a single storey House in October 2016. I am a non filer and now want to sell this house for Rs 10 million. Please guide me about CGT.

Thanks and regards 

Answer 1

1. Since you purchased the plot in Dec 2015 and constructed a house in Oct 2016, the holding period exceeds 4 years.

2. Under current law, capital gains on disposal of residential property held for more than 4 years are exempt from CGT.

3. As a non-filer, you will still face higher rates of withholding tax (advance tax) on the sale transaction at the time of transfer.

4. This withholding is adjustable if you file a return, but final if you remain a non-filer.

5. Therefore, no CGT is payable, but advance tax on sale price will be deducted by the registrar.