Capital Gains Tax on Property Calculator

Division VIII: property acquired on or before 30 June 2024 is charged by holding period and type whatever the seller's filer status, each step a year: open plot 15%, 12.5%, 10%, 7.5%, 5%, 2.5%, 0% (nil over six years); constructed property 15%, 10%, 7.5%, 5%, 0% (nil over four); flat 15%, 7.5%, 0% (nil over two). Property acquired on or after 1 July 2024: 15% for a person on the Active Taxpayers' List on the date of disposal; otherwise the Division I rates for individuals and AOPs, not less than 15% of the gain, and the Division II rate for companies.

Off the list: which slab reading

Off the list, Division VIII sends an individual or AOP to the Division I rates. Whether those run on the gain as the top slice of other income or on the gain alone is not settled. The Ordinance gives a gain on securities a separate-block rule (s.37A(4)), which is why the shares page runs the slabs on the gain alone, but gives a gain on property none, which favours the top-slice reading; so this page leads with the top-slice figure (on the salaried table where salary exceeds 75% of taxable income) and shows the gain-alone figure, the lower reading, beside it. With no other income the two are the same. No s.4AB surcharge is added: the tax is imposed under s.37(1A) at Division VIII rates, which borrow Division I's rates (a reading). On a Rs 2,000,000 gain the slabs alone give Rs 290,000, less than the floor, so Rs 300,000 is due; with Rs 4,000,000 of other income the top-slice reading, this page's headline, gives Rs 820,000.

The gain itself

s.37(1A): the gain on disposal of immovable property situated in Pakistan is chargeable under the head capital gains at the rates in Division VIII, notwithstanding s.37(1). The gain is the consideration less the cost (s.37(2)). The consideration is the amount received or the fair market value, whichever is higher (s.77(1)), and for immovable property it cannot be less than the value the FBR has notified (s.68(4)) or, where the FBR has notified none, the value fixed for stamp duty (s.68(5), (6)). Cost includes incidental expenditure on buying and selling, such as stamp duty, registration and commission (s.76(2)(b)), and documented improvements. A purchase of property worth more than Rs 5 million paid other than through a bank or digital channel is not treated as cost (s.75A). Holding period runs from the date of acquisition to the date of disposal (s.75(1), (5)); a band boundary on the anniversary falls in the lower band ('does not exceed one year' includes exactly one year). Clause (9A)'s 'after completion of three years' is read the same way.

Inherited property: the cost is the fair market value when it passed to you (s.76(8A), Finance Act 2026). A gift from a relative: no gain on the gift, and you take the giver's cost (s.79). You acquire property when you begin to own it, or are granted a right such as an allotment (s.75(5)), and dispose of it when you part with ownership (s.75(1)); read literally, an heir's or donee's date is the date they received it, which would put property inherited after 1 July 2024 in the new regime (a reading). A capital loss cannot be set off against other income; it is carried forward and set off against capital gains of the next six tax years, the earliest first (s.59).

Section 236C, and overseas Pakistanis

Section 236C advance tax collected at transfer is adjustable against this tax (s.236C(2)), except that where the property is acquired and disposed of within the same tax year it is a minimum tax (proviso to s.236C(2)). For a seller off the list, whose 236C is collected at a higher rate, the text does not settle whether the minimum is the filer amount or the amount collected. A non-resident individual holding a POC, NICOP or CNIC who acquired the property through a Foreign Currency Value Account or NRP Rupee Value Account with an authorised bank: the 236C tax collected is the final discharge of the tax on the gain (second proviso to s.236C(1)), so that amount, not this page's figure, is the tax. The Section 236C calculator works out the collection.

Where this stops

Second Schedule Part I clause (114B): the gain is exempt on the first sale of property acquired from or allotted by the Federal or a Provincial Government (or an authority certified by the official allotment authority) in recognition of services rendered, to the persons in the proviso to s.236C(1): dependants of a Shaheed, a person who dies in service, war-wounded personnel, ex-servicemen and serving personnel of the Armed Forces, and ex-employees and serving personnel of the Federal and Provincial Governments. No 236C is collected on that sale either (same proviso). Second Schedule Part III clause (9A): where the gain is not exempt, tax on the first sale of property acquired or allotted to ex-servicemen or serving personnel of the Armed Forces, or ex-employees or serving personnel of the Federal and Provincial Governments, as original allottees certified by the allotment authority, is reduced by 50%; by 75% for a gain arising after three years from the date of acquisition. Not covered here: property held as stock-in-trade or depreciable property (outside 'capital asset', s.37(5)), banking companies (Seventh Schedule), and a professional-firm AOP (top Division I rate 40%). Disposals before 1 July 2022 fall under earlier tables and are not computed. Other exemptions in the Second Schedule are not modelled.