The new budget for 2024-25 has introduced big changes to Property Tax for Non Filer in Pakistan. The Pakistani government has set new tax rates that affect buying and selling property, especially if you still need to file your tax returns. Let’s discuss what these changes mean.
Difference Filers and Non-Filers
- Filers register with the Federal Board of Revenue (FBR) and submit their tax returns regularly. They enjoy lower tax rates and may access various benefits.
- Non-Filers: These individuals haven’t registered with the FBR or haven’t filed their tax returns. They face higher tax rates on property transactions.
- Late Filers: Registered individuals who miss the filing deadline also face higher tax rates as a penalty.
Being a filer can save you money on taxes and avoid penalties.
What’s New in Property Taxes?
Here’s how the new tax rates look:
Buying Property
If you’re buying property, the tax rates are now:
Selling Property
If you’re selling property, the tax rates are:
What Does This Mean for You?
- Higher Taxes for Non-Filers: If you don’t file your tax returns, you’ll pay much higher taxes when buying or selling property. This is meant to encourage people to file their taxes.
- Same Rates for Filers: Your tax rate is the same if you’re a filer. This means being a registered taxpayer saves you money.
- Penalties for Late Filers: If you file but miss the deadline, you’ll face higher taxes, too. So, it’s essential to file on time.
- No Adjustment for Quick Sales: You can’t adjust the taxes if you buy and sell a property within the same year.
Why Being a Filer is Beneficial
- Lower Taxes: Filers pay less tax, making property transactions cheaper.
- Government Benefits: Registered taxpayers may access more benefits and opportunities.
Exemptions to Keep in Mind
- Dependents of Martyrs and War Wounded: People who are dependents of military martyrs or war-wounded personnel can get tax exemptions.
- Government Allotments: If you get property through a government allotment, you might be exempt from certain taxes.
Conclusion
The new property tax rules aim to make the real estate market more transparent and encourage people to file taxes. If you still need to file your tax returns and want to know how to become a filer, now is the time to start. By doing so, you can save money on taxes and avoid penalties.
Stay informed about these changes, and consider talking to a tax advisor to help you navigate the new rules.