How Property Taxes Affect Your Real Estate Possession?

For people living in Pakistan and doing business or working in Pakistan and their properties here, the 7E tax applies to them today. In this blog, Nexthome. pk will talk about what is property tax and how to avoid it. While living in Pakistan, first of all, this tax has been applicable since last year. Whatever property you transfer, you need a certificate from FBR on which you have paid tax or an exemption certificate. If your property is exempt from SEVI, then, first of all, you need to get a certificate.

What is Property Tax?

If you have any property, if you have multiple properties, or if you have one property whose value is above Rs. 2.5 crores, FBR value, and property tax apply to it, except for not-for-profit or trust properties.

Who to Pay Property Taxes

If you have four to five properties whose value as per FBR is Rs. 2 crores, then property tax does not apply to you. However, if you have properties worth around Rs. 3 crores, then the tax on you is Rs. 50 lakhs. If you own a property, SEI tax will be applicable to it.

You have to pay FBR annually.

There is an agent in the first year because we already pay the advance along with the holding tax in the first year.
In the year in which you purchase the property, you do not have to pay SEI tax. This applies after the next year, and you must pay for it every year.
The house is a property; you do not have to pay SEI tax on it if your real estate is a construction business.

How to Evade Property Taxes?

It is legally possible to evade property taxes; however, tax theft is a heinous crime under the FBR rules. However, property taxes can be avoided while living in Pakistan. The way in which FBR has implemented the tax, there is some relaxation in this tax. The relaxation is that the let’s property is a property of yours on which you can already pay tax. You are paying income on that property. You do not have to pay income tax. Now, how is this possible? Let’s assume that you have four plots and two houses and that there are two houses inside. You can save your two houses from SEI by paying a small rental tax on them. Remember that SEI tax is not levied on any property which is a property.

Who Can Evade Property Taxes

Anyone on the property you are paying tax from sources; then in the same way, if you show your property as a rental, which is already your house, apart from your personal house, you have some houses, then generally most of the people Whatever rent is already paid, before today it was that people were saving tax by not showing it, but it is better than to avoid the enormous tax, we would recommend that you rent your constructed property.