Tax on Rental income and Sale of Property Budget 2022-23

Finance Minister Miftah Ismail presented The budget for the fiscal year 2022-23 in National Assembly on 10th June 2022.

Govt has increased the sale tax for filers from 1% to 2% and whereas the same will be double in the case of nonfilers who do not appear on the active taxpayer list.

Tax for Rental Income

There will be No tax for rental income if someone owns a single house but if someone owns a 2nd property then he/she will have to pay the rental income tax if the fair market value of the 2nd property is more than Rs25 million.

The rental income from such property is deemed as 5% of the fair market value of the property and rental tax will be 1%.

Capital Gain Tax

Capital gain tax on the sale of property depends on the time period the purchaser of the property holds the same before selling.

If the purchaser of the property sells it within one year of buying then the capital gain tax will be 15% of the sale price of the property.

If the purchaser sells the property in 2nd year of purchasing then the capital gain tax will be 12.5% of the sale price of the property.

Same like this the capital gain tax will be reduced with every passing year by 2.5%.

After six years of holding the capital gain tax will be 0%.

Also Read: Budget 2022-23-Salaried Person Income-Tax

One thought on “Tax on Rental income and Sale of Property Budget 2022-23”

Leave a Reply

Your email address will not be published.