Tax On Property Files?Types of Property Files
CategoriesProperty Real Estate

Tax On Property Files & Types of Property Files

There are hundreds of housing schemes operating in Pakistan and plots are sold to customers via files. It’s a question that often arises in the minds of investors and end- users, whether they have to pay tax on the files they purchase. This is an article that will answer the question for you.

What is a property File in real estate?

In real estate terminology, a file is a document promising the delivery of a piece of land in an upcoming or already existing housing society. There is no physical existence of files and they are not authorized by any authority.

The range in which files are distributed is decided by the society. The number of plots the society intends to give to the customers are the subject of the files. A small percentage of the total price of the plot may be available for down payment or booking charges.

Customers can pay to get ownership, and society works on development. After a series of events like balloting and possession, files are converted into plots and issued to buyers. People who can’t pay the full cost of a plot can purchase files at low prices and pay installments to become owners.

Taxes on Property Files

Types of files

Generally, there are different stages and types of files, and tax is applied after a certain stage. This process will be explained step-by-step so you can understand it.

Open Files and Closed Files

Open and closed files are provided at the beginning of the project. Closed files are registered in the name of the client, while open files are not. Open files are preferred by end- users who want to pay installments, while closed files are preferred by short-term investors who want to build homes. Both of these file types are just proof of ownership of a piece of land in a housing project and the Federal Board of Revenue does not consider them to be real property.

Balloted Files in Real Estate

Balloting is the second stage of the journey of files and it is where the society picks out the members and votes the files down. The files move on to the next stage, which is possession, from here. A balloted file indicates that your ownership of a piece of land/plot is confirmed and will be issued in your name. Plot numbers are usually implemented after the balloting. A file can become eligible for tax implementation at this stage. After the file is balloted, a number is assigned to the plot, and most of the time, FBR implements tax.

Possession Files in Real Estate

After the file is balloted, it moves on to the next stage of possession. At this point in the conversion process, the society declares the file that is converted into a file on the customer name. This means that the rightful owner of the numbered plot is the file owner. As your plot becomes an actual property, a tax will be implemented on it.

When the plot number is issued to the customers, the tax is usually implemented on the file between the balloting and possession stage. Tax is usually implemented on the housing project, and then on the customers, by the management. The tax is added to the ledgers of customers by the society.

What is the Amount of Tax on property files?

The amount of tax is calculated using the diaphragm created by the Federal Board of Revenue FBR divides taxpayers into 2 categories, filers and non-filers, both of which are registered through an NTN number. The amount of tax that a person has to pay is low compared to others.

The tax for both filers and non- filers is given below.

Tax for Filer

  • Filer has to pay 2% (of market value) as tax to FBR

Tax for Non-Filers

  • Non-filer has to pay 7% (of market value) as tax to FBR

Conclusion

We hope the article answers your question about whether tax is implemented on a file or not. Whether you are a filer or non-filer, you have to pay government-implemented tax sooner or later against your plot. When the plot number is allotted, tax is applied to the file between the balloting and possession stages. It is recommended that file owners become filers in order to enjoy tax benefits and knowledge of FBR tax policies.

Categoriesnews

The transfer of the LDA Director General has been stopped.

The Director General of the LDA, Aamir Ahmad Khan, was prevented from being transferred by an order issued by the Lahore High Court.

According to a press release issued by the LDA, the court directed the Chief Secretary of Punjab not to make any changes to the current LDA Director. The court ordered the director general of LDA to create rules and regulations for the appointment of an environmental consultant to address environmental concerns on major highways.

According to the press release, the LDA is taking steps to make the city’s main highways into model roads and is conducting a campaign on electronic media, major national newspapers, and social media. At the next hearing on February 3, 2023, a report will be submitted on the progress of the efforts.

Categoriesnews Real Estate

The master plan declared 33,000 acres of housing projects as green space.

According to the Lahore Development Authority, 33,000 acres of brown areas land have been added to the green areas in the Lahore Master Plan-2050.

The Director General of the LDA said that they took 27,000 acres out of the brown regions in the north side of the city and designated them as green ones for agricultural purposes. There are 6,000 acres of brown land along the Bambawali-Ravi-Bedian Canal that have been acquired and given for green spaces or national strategic policies.

12,000 acres of additional land that were never thought of as brown areas but had to be designated as such in order to accommodate southward growth were included for the first time.

According to the survey of 30,000 houses in the Lahore division, 25 million people would live in the city alone by the year 2050.

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Property transactions brought in 81 billion pkr for the Federal Board of Revenue.

According to the official data provided by the FBR, income tax receipts from the sale and purchase of real estate increased by 32% to   PKR 81.20 billion in the tax year 2022, from PKR 61.15 billion in the tax years 2020–

Sections 236-C and 236-K of the Income Tax Ordinance were used to collect taxes on the sale, acquisition, and transfer of properties.

The tax revenue under Section 236-K increased by 32% to 64.58 billion for the tax year 2022, when compared to the previous year. It is important to remember that the government gave the construction sector a large subsidy in the previous year, which included a reduction in the tax rate on real estate, as well as an increase in FBR income sources.

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The Punjab Central Business District Development Authority (PCBDDA) says the Kalma Chowk Underpass will open in February.

LAHORE: The Punjab Central Business District Development Authority (PCBDDA) in Lahore has been putting in a lot of effort to make the roads around Kalma chowk accessible to traffic.

While assessing the project’s advancement, the CEO of PCBDDA provided this information. The two barrels of the Central Business District’s Punjab Boulevard project would be finished by then according to him.

The underpass’s roof has been sealed and a storage tank is being excavated. Two underpasses and an overhead bridge are part of the renovation project which aims to enhance traffic flow and offer access to the recently built smart downtown.

CategoriesProperty Real Estate

5  key points To success in property investment

5  key points To success in property investment

1. Know your numbers:

Before you start investing in property, you’ll need to know your numbers. You’ll need to know how much money you have available to invest, and how much you’ll need to make a profit. You’ll also need to know how much rent you can afford to pay.

2. Have a plan:

Once you’ve got your numbers, you’ll need to have a plan. You’ll need to decide what you want to do with the property. You might want to buy a property and rent it out. You might want to renovate the property, or even sell it.

3. Make a decision:

Once you’ve decided what you want to do with the property, you’ll need to make a decision. You’ll need to decide whether you’re going to invest in property, and if so, what type of property you’re going to invest in.

4. Research:

You’ll need to research the property you’re going to invest in. You’ll need to find out the current market value of the property, as well as the rental value. You’ll need to know the average rent for the area, and the number of properties that are available to rent.

5. Set a budget:

Once you’ve researched the property, you’ll need to set a budget. You’ll need to decide how much money you’re going to spend on the property. You’ll need to decide how much you’re willing to pay for the property. You might also need to decide how much you’re willing to borrow.

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CM Punjab laid the foundation for major infrastructure projects.

LAHORE: The Chief Minister of Punjab, Chaudhry Parvez Elahi, recently laid the cornerstone for three major infrastructure projects in Lahore: The Chief Minister and other people were at the ceremony. The Chief Minister said during the event that 20 billion rupee worth of initiatives would be finished within a year.

He stated that 7.53 billion rupees would be allocated to the three projects: the Gulshan-e-Ravi T Junction, the cricket stadium, and the Samanabad Morr underpass.

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The Chief Minister was of the opinion that the construction of the Samanabad Morr and T Junction underpass would greatly improve traffic flow. He claimed that the city was going to be transformed into a hub for building and development and a top-tier developed metropolis.

The Chief Minister stated that the traffic issues had begun to be alleviated by the restoration of Bund Road. The rehabilitation of the Gulshan-e-Ravi T Junction and Bund Road is expected to be finished in eight months. The projects are expected to greatly reduce the area’s pollution.

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The FBR introduced a new exercise to expand the tax base.

The FBR introduced a new exercise to expand the tax base.

A news source reported on January 4 that the Federal Board of Revenue has started a new exercise to broaden the tax base.

The Special Assistant to the Prime Minister (SAPM) on Revenue visited the Regional Tax Office (RTO) Islamabad and the Regional Tax Office (RTO) Rawalpindi to start the FBR documentation drive. The targets for broadening the tax base were assigned to the RTO Rawalpindi during the visit.

The Chief Commissioners of Islamabad and Rawalpindi briefed the PM’s aide about the progress made in broadening the tax base, according to a news source. In order to expand the tax base, the Directorate General of Broadening of Tax Base and the Digital Invoicing & Analysis has been made operational.

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TEPA has a plan to develop three model roads.

TEPA has a plan to develop three model roads.
 

According to news sources, the Traffic Engineering and Planning Agency has prepared an agenda to develop three model roads in the city.

TEPA will develop Jail Road, Mall Road and Ferozepur Road with an infrastructure plan. The plan focuses on eliminating encroachments, track management, zebra crossing plane marking, repairing traffic signals, and taking action against illegal parking stands. The plan includes fixing cracks in the roads, repairing broken boards, developing of more roadside green spaces, fixing cat eyes and speedbreakers, and widening of roads. The TEPA formed a committee to implement the eight-point agenda.

The three roads that are chosen for long-term signal-free roads are frequented by commuters due to the presence of important government buildings and civic facilities.