Tax Book 2023

Capital Gains Chapter- 12

year but does not exceed two years

3. Where the holding period of an immoveable property exceeds two
   years but does not exceed three years A x 1/2^


4. Where the holding period of an immoveable property exceeds three
   years but does not exceed four years A x 1/4^


5. Where the holding period of an immoveable property exceeds four
   years 0
   where A is the amount of the gain determined under subsection (2)
   Clause (9A) has also been inserted in Part III of the Second Schedule to the Ordinance.
   The reduction of 50% of tax payable in respect of capital gains on disposal of immovable
   property on the first sale of immovable property acquired or allotted to ex-servicemen and
   serving personnel of Armed Forces or ex-employees or serving personnel of Federal and
   Provincial Governments, being original allottees of the immovable property, duly certified by
   the allotment authority remains intact as for this purpose:
   Provided that for capital gains arising after completion of 3 years from the date of
   acquisition of immovable property the amount of tax payable shall be reduced by 75%.
   Exemption from capital Gain U/C (114B) of Part I of First Schedule
   Profit and gains accruing to persons mentioned in proviso to sub-section (1) of section 236C
   in respect of first sale of immovable property acquired from or allotted by the Federal
   Government or Provincial Government or any authority duly certified by the official allotment
   authority, and the property acquired or allotted is in recognition of services rendered by the
   Shaheed or the person who dies in service.
   Notwithstanding anything contained in sub-section (1), gain arising on disposal of immovable
   property situated in Pakistan, to a person in a tax year shall be chargeable to tax under the
   head capital gains at the rates specified as under:

Sr.No Holding Period Rate of Tax

Open plots

Constructed

property

Flats

( 1 ) ( 2 ) ( 3 ) ( 4 ) ( 5 )

1. Where the holding period does not
   exceed one year

15%

15%

15%

2. Where the holding period
   exceeds one year but does not exceed
   two years

12.5%

10 %

7.5%

3. Where the holding period
   exceeds two years but does
   not exceed three years

10%

7.5% 0 %

4. Where the holding period
   exceeds three years but does not
   exceed four years

7.5%

5% 0 %

5. Where the holding period
   exceeds four years but does not exceed
   five years

5%

0 % 0 %

6. Where the holding period
   exceeds five years but does
   not exceed six years

2.5%

0 % 0 %

7. Where the holding period
   exceeds six years

0% 0 % 0 %