Budget 2024-25: Property sale to be taxed up to 45% for non-filers

In the proposed Budget 2024-25, the government plans to significantly increase taxes on the sale and purchase of property, imposing higher rates on non-filers compared to filers.

According to the budget document, capital gains on property will be taxed at 15% for filers and up to 45% for non-filers.

Federal Finance Minister Muhammad Aurangzeb, while presenting the budget in the National Assembly, stated that this initiative aims to document the economy and stabilize the housing sector, ultimately providing proper accommodation for people.

Key proposals include:

15% Capital Gains Tax: On the purchase and sale of property for filers.

45% Capital Gains Tax: On the purchase and sale of property for non-filers.

3% Advance Income Tax: On the sale of property worth Rs 5 crore for filers.

4% Withholding Tax: On the sale of property worth Rs 5 to 10 crore for filers.

5% Withholding Tax: On the sale of property worth more than Rs 10 crore for filers.

10% Withholding Tax: On the sale of property for non-filers.

6%, 7%, and 8% Tax Rates: For late filers on immovable properties.

15% Capital Gains Tax: On the purchase of immovable property starting from the next financial year, with higher rates for non-filers.

The budget targets to generate Rs 477 billion from income tax on properties. These measures are expected to increase tax compliance and reduce undocumented transactions in the real estate sector.