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11/Oct/2019
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With the new government, the Property Tax In Pakistan 2019-2020 has also become the most important initiative. The PTI is trying to streamline the overall process, by collecting taxes from the people of the country.

The imposition of taxes is different for all the sectors of Pakistan. Just like other prominent sectors, Real Estate has also witnessed major changes in terms of Property taxes in Pakistan.

Government is continuously trying to help people looking for property investment in Pakistan. In order to facilitate people, it has introduced an online property tax challan facility as well.

What is Property Tax?

Property tax is any tax that people have to pay while buying and selling the property of their own. Property tax includes sales taxes that one has to pay while they are purchasing property, whereas maintenance is paid every year.

Before we go into the changes, this government has made we need to understand how many types of taxes are applicable in Pakistan.

There are basically four types of taxes, mentioned below:

• Capital Value Tax

• Capital Gains Tax

• Withholding tax

• Tax Duty

Though property taxes Punjab are not welcomed by investors and they are trying to find ways to run away from these property taxes but in either case, people who are doing so will get into trouble.

FBR gets each and every information regarding your income, investments, and transactions, so you cannot hide your money matters from them. In case you are proved faulty, FBR will penalize you and might freeze your assets.

People investing in the real estate sector should know the new policies and developments going on this sector so that they do not have to face any difficulty. So this blog mainly focuses on the new taxes invasion in the country.

Financial Year:

Basically, the tax year is of 12 month but different from the actual year that starts in January and ends in December. The tax year 2019 starts from 01 July 2018 up to 30 June 2019. The tax year ends on 30 June. The tax year 2020, has started from 1st July 2019 and will end on 30 June 2020.

Increase in Property Tax collection-Year 2019-2020

While telling about the increased property tax, a tax expert wrote in The New that:

Increase in Property Tax collection-Year 2019-2020

The establishment of the directorate created a fear and people preferred to declare property values near to the fair market values. They said the valuations notified by the provinces are very low but due to transactions at the higher rates the property tax collection increased significantly.”

According to a report, Punjab has won the tax collection marathon by collecting PKR 5.02 bn during the first half of FY 18-19. Sindh stood second by collecting PKR 1.83 billion from July to December.

Both the provinces recorded a sharp increase when compared to the last fiscal year. Punjab has witnessed an increase of 22.64 percent whereas Sindh beheld 73.83 percent growth in tax collection.

Khyber Pakhtunkhwa (KPK) and Baluchistan received PKR 450 million and PKR 83 million tax on property, respectively.

Excise, Taxation & Narcotics Control Department, Punjab has revealed that there is a 5% yearly rental value that is levied as tax.

Annual rental cost is calculated by evaluating properties based on its type, be it residential or commercial, whether it is rented or self-occupied.

On the contrary, according to Excise, Taxation & Narcotics Department Sindh, the property rented or owned is not considered.

The tax imposed is 25% of the yearly rental value of the property.

How Much Tax you have to pay while selling a property?

When you are selling the property in Pakistan, you need to pay Capital Gains Tax paid on the gain of profits.

selling a property

Capital Gain tax:

It is the tax that is to be paid by the seller. When the seller gains profit while selling the property, it is the capital gain which is taxable. Capital Gain Tax is levied when the property is sold within the three years of its purchase.

For the first year, 10% tax is paid, whereas 7.5 percent if sold in the second year and 5% if sold in the third year. The profit tax gain is to be calculated in reference to the fair market value.

If the property is held for more than three years, the seller is not going to pay Capital Gain Tax.

Buying a property? Here are the tax slabs for you:

When a person thinks to buy property in Pakistan, he wants to know how much tax is levied on the property purchase in Pakistan.

Below mentioned are the different types of tax that you would have to pay while purchasing property in the year 2019-2020:

Capital Value Tax (CVT) & Stamp Duty:

Becoming the owner of any property is not that easy as you have to pay the hefty amount. Capital value tax is basically a provincial tax that is paid by the buyer when buying a property.

This tax is payable on the capital value of the acquired asset. According to the Finance Act, 2006, the capital value tax is imposed at the rate of 2% of the recorded value.

According to new budget 2019-2020, the federal government has endorsed the abolition of DC rates. Currently, the total of CVT and Stamp Duty for an urban property is 5% (2% CVT and 3% Stamp Duty).

Much would-be thinking of what stamp duty is. It is a tax paid on the legal document while purchasing the property. Basically, Stamp Duty is levied at 3% of the DC rates of the property.

A tax that is payable by both buyer and seller:

There is a tax that is paid by both the parties: the one who is selling the property and the other one who is buying it.

Withholding Tax (WHT):

Withholding Tax is of great importance. It is the federal tax that has to be paid by buyer and seller when dealing on property. WTH has to be paid at the time of the property deal.

Withholding tax is also known as advance tax which clearly shows it is an advance tax on the other taxes. The person who is buying any home and is income tax filer, he has to pay 2% withholding tax.

Whereas a non-filer has to pay 45% tax. This rule is passed so that more people should file income tax every year.

On the other hand, people who are buying property need to pay tax only if the property is valued more than PKR 4 million.

The sellers of the property have to pay 1% tax is that are filers and 25 tax if they are non-filers.

Property Tax Exemptions:

The owners having any of the below-mentioned cases are exempted from paying taxes on property in Pakistan.

• The residential house having area of fewer than 5 marlas is placed in category A

• A property which is un capable of commanding annual rent exceeding PKR. 4320 is exempted from paying taxes.

• A single house commanding annual rent exceeding PKR. 6480 is not taxable if it is f occupied by the owner for his residence

• The property which is owned by orphan or disabled person which is up to PKR.12150/- per annum is also exempted

• The building owned by the government is not taxable.

• Mosques and other religious building are exempted from paying taxes.

• Public parks, playgrounds, schools, and hospitals do not fall into the tax net.


11/Oct/2019
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You want to decorate your bedroom apartment as per your dreams, cozy, big, elegant but within the limits of your pocket, and if most of your decorating budget went into the living room, you are probably panicking about your barren bedroom. Luckily, we are telling you about some hacks for decorating your bedroom as per your dream.

 

These affordable hacks only look expensive, so no one has to know you pulled it together on a shoestring budget. Check out our tricks for styling a dreamy boudoir.

1. Add drama with paint

A fresh coat of paint can instantly make a room feel new and polished. A bold color will help you make a major statement on a small budget. Try a moody wall color paired with glamorous metallic accents for a look that feels especially luxe.

2.Canopy with curtain rods

You can create a dreamy canopy bed on the cheap by hanging curtain rods from the ceiling.

3.Side-eye storage

Try utilizing your side table as a storage place for the odds and ends in your bedroom. We all know you are still clinging to that first-place of the trophy, but it does not exactly match your bedroom.

4.Traditional with twist

A room without any view? Center a mirror over your bed and give it the window treatment—flanking it with curtain panels hung from a rod. Classic hotel linens with a thick border complement the setup and frame the bed’s shape beautifully. Punch up solid white bedding with a printed toss pillow. A little decor goes a long way. Stick to essentials like a lamp and an accessory or two, such as an alarm clock or framed photo.

5.Pro styling tip

Creating your dream bed should not be a nightmare. Organic cotton is free of toxic pesticides and fertilizers, which lessens their impact on the environment although it raises their price. If someone in your family has skin sensitivities, certified organic textiles like these options may be your best choice.


11/Oct/2019
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Many of the Isloo-ites can easily recall their conversations with relatives or friends living abroad, or in any other city of Pakistan for that matter, to discuss the possibility of purchasing an best apartments in Islamabad. Since they receive such calls more often, they keep on looking for options in town to refer to their loved ones.

I am sure that they would be considering the things that really matter in the long run instead of the plastics of branding etc. In my opinion, any project of luxury apartments must have a few basics fixed at least. What I consider as the most important are as follows.

Best Apartments in Islamabad

Your busy lifestyle doesn’t give you the luxury of spare time, and when you have to move in and out many a time daily, you may not afford a place that is always unreachable due to distance or heavy traffic flow. So, the location of your luxury apartment is key to accessibility.

Ice cream

Accessibility

Mood matters a lot in a family life. When and where you have to move, you never know. Be it two scoops of ice cream for your little one, or a pair of shoes for the lady of the home, you have to go. Now, everything has to be within your access, otherwise returning half full won’t be a good idea. What about a luxury apartment on a 6-lane signal free Islamabad Expressway that gets you everywhere in minutes whenever you want?

Affordability

The budget matters, period. It has to be according to your pocket and future financial plans. Be sure, it is.

Return on Investment

When you invest in an area that is considered the next hub of development in Islamabad by the real estate experts, you need not be worried about the return at all. Importantly, the area of Capital Enclave is developing fast. The areas that develop profoundly, always offer the best return on your investment.

Capital Icon Rooftop Swimming Pool

Quality Living

Last but not least, unique features that you get as part of the package must be considered the most. In the Capital Icon luxury apartments, there is a list of exceptionally useful yet unique features that have been designed for you including roof top swimming pool and roof top restaurant etc.

In short, the project of Capital Icon luxury apartments is the best opportunity you could recommend your loved ones to tap as an option. After all, you are recommending them nothing less than a jewel in the heart of Islamabad.


11/Oct/2019
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The Islamabad Expressway is the backbone of transportation between the North and the South regions of the country. It provides a crucial access passage to the dwellers of Islamabad and Rawalpindi too. Not only this, the Islamabad Expressway has opened many new avenues for projects of diverse nature as well.

Let’s just have a look at the advantages that you can have if you get an apartment close to the Islamabad Expressway.

1. The Perfect Radius

The Capital Icon covers whole area of importance. Its surroundings include Marriage Halls, Airport, Malls ,  Restaurants and Cafe’, Parks and Universities and easy access to whole Islamabad.

2. The Communities

The location of Capital Icon is central to all communities and societies. Capital Icon is near to PWD, Bharia Town, Naval Anchorage, Gulberg Greens and Emaar. People of different class, culture and background reside in these societies and those living in Capital Icon will have the ease of approach to all of them.

capital icon location

The Capital Icon’s Location

3. A Signature Lifestyle

A signature lifestyle which anyone could ever imagine is offered by Capital Icon. The lavish apartments along with the facilities of 24/7 power backup, Mosque, car parking, swimming pool, gymnasium, kids play area, 24/7 health care clinic with ambulance, open cinema, restaurant, cafe’ and billiards.

4. The Signal-free Corridor

The signal-free corridor, the path connects Zero Point in Islamabad to Rawat on the Grand Trunk (GT) Road, offering a wider route to traffic entering and exiting the city. Capital Icon will have the benefit of using this 5 lane signal-free road which is about to expand to 8 lane according to recent news, to access Islamabad in short time.

Not only this but many other upcoming projects will enhance the importance of your apartment near Islamabad Expressway. So having own apartment at Capital Icon brings you all the facilities and signature lifestyle for future. As Ralph Marston said: “What you do today can improve all your tomorrows”.

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An evening view of Islamabad Expressway

 

 

 


11/Oct/2019
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The political maturity of a nation is a guarantee to a sound future, and luckily the Pakistani nation is attaining this level gradually. Some experts could read the undertone of a positive change happening around us. The nation is moving towards a stable political system that could accommodate various strains at a time. These moments are precious. Those who tap this moment from the Best Investment Opportunities point of view shall be among the most successful tomorrow Insha ALLAH.

Your own apartment in a lavish yet very economical luxury apartments project, the Capital Icon, would be the best decision you can make today in the above perspective. Its location is marvelous, and the features offered there, are exceptional.

Secondly, the prospects of a higher return on your investment in the Capital Icon as profoundly high for many reasons but among the most are as follows:

  • Islamabad as a favorite destination – this is an evergreen factor
  • Prime location – located on the 6-lane signal-free Islamabad Expressway
  • Reduction in access time – with an up-gradation of the Islamabad Expressway, access time to major facilities shall be reduced further
  • Neighborhood – development in the PWD area that also connects to the Bahria Town, will increase the importance as the Capital Icon is right in front of the PWD
  • Arrival of more projects from the same group in the same area in the near future

Read the moment and ride the waves.