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Good news for Real Estate Sector | Removal of 7E Tax for Transfer (FBR)

Removal of 7E Tax for Transfer (FBR)

Recently, many taxes were added to real estate sector, increasing the worries of the investors. But the main cause of their worries was implementation of 7E Tax as there was no proper information about the specifications of this tax.

Removal of 7E Tax for Transfer (FBR)

Pakistan Property Services would like to congratulate all the non-resident real estate investors. We offer warm congratulations to all non-resident investors, buyers and transferors for such great news of removal of 7E Tax for transfer of all type of real estate plots. In July 2023, FBR imposed taxes on the immovable properties. It was under Section 7E of the Income Tax Ordinance, 2001 which released a method of tax payments on deemed income. Investors had to obtain certificate from the Commissioner but now FBR has provided relaxation to the investors in this regard too.

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It is a worthy news for real estate investors which will help in investing in any property easily. The removal of 7E Tax has happened through the combined efforts of Dealer Association of Pakistan. Their hard work has brought the great results of removal of 7E tax applied by FBR Pakistan.

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However, transferring authority of immovable property will maintain a proper record of the seller/transferor data along with relevant documents with respect to properties under sale/transfer covered under these specified situations.

Let’s first discuss what is 7E tax so that readers can have a clear understanding.

What is 7E Tax?

7E tax is 1% at fair market of property value which FBR decides according to the different LDA-approved areas like Bahria Town Lahore and Lake City. This was applicable on the properties, both residential and commercial, apart from the personal residential property and a commercial property. The taxes were applicable whether it generated income or not. It was applied on properties having value more than PKR 1.5 Crore.

Who are eligible for its exemption?

The property having value less than PKR 1.5 Crore will obtain an exemption certificate which shows that 7E tax will be not applied. The property having value more than 1.5 Crore PKR will obtain a letter which shows the buyer\transferor will pay 7E Tax on their particular property. This tax is for all residents, investors and nonresidents in Pakistan.

Currently, 7E tax is removed for certain period of time (2023-24). 7E tax is removed for all residents, investors and transferors under the jurisdiction of Lahore High Court. It will certainly increase worth of property for investors and residents. Overseas investors will show more interest in buying and selling of property in Pakistan.

Non-Residency Form (Form B):

Overseas Pakistani get more benefit by the removal of 7E Tax. They need to submit few documents to prove their residence in any other country. Investors will provide Non-Residency Form, Valid Passport, and NICOP to the transferring authority to declare non-residency in Pakistan.

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The Form B should be filled with NICOP Card (National Identity Card for Overseas Pakistanis). The transferring authority will transfer the property under sale/transfer, after verifying the credentials declared in the Form-B of the investors and will strictly ensure that the non-resident person stay in Pakistan is less than 183 days for each applicable tax year for which non-resident individual claiming non-residency status.

If any investor fill this form B, 7 E Tax will not be applied for many upcoming years. This is a great implantation for overseas investment.

Effect of removal of 7E Taxes:

The good news of 7E Tax removal is going to have positive effects in real estate market. The following are sound effects after removal of 7E Tax:

  • No need of Certificate for transferring buying and selling for all residents, local and overseas investors and transferors.

Many investors in real estate market are not tax payers and do not want to show their income stream to FBR. They had stopped the buying/selling of the real estate properties due to imposition of heavy taxes and need of certificate for transfer. As there will be no activity, there was a possibility of default of real estate sector. Now no such thing will happen and real estate sector will flourish.

  • The property value in real estate market will flourish.

As the 7E tax has now been removed, there is no need to pay extra taxes. 7E Tax Removal will increase in the market activity of real estate.

  • This news happens to be a good opportunity for investors and residents.

People who are looking to invest for their personal use, whether in residential or commercial, will benefit from this a lot.

  • The overseas investment will increase in Pakistan.

As overseas Pakistanis will benefit from 7E Tax Removal, they are more likely to invest more in real estate Pakistan. The increase in remittances will also bring a favorable wave in Pakistan’s economy.

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Once again, Congratulations to all investors, buyers and transferors for such great news of removal of 7E Tax for transfer of all type of plots.

Take advantage of this golden chance and book the affordable plots at reasonable prices and a flexible payment plan with Pakistan Property Services. Investors should invest in their desired properties as soon as possible.

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You can contact Pakistan Property Services to book any property. We provide better consultations for your real estate matters as the authorized dealers of Bahria Town and Etihad Town projects. For further information, you can call +92 321 111 2508 or visit our YouTube channel Pakistan Property Services, where we regularly update you to learn about the new trends in the real estate market of Pakistan.

Projects We Deal in:

Many residential and commercial societies in Pakistan are evaluated carefully to help our clients make the better decision. Pakistan Property Services helps the clients invest in projects with good prospects that depend upon the parent company, developers, location, payment plan, amenities they can have in the desired project.

Lahore:

Lahore is the cultural and economic hub as well as the provincial capital of Punjab. The city is well known for its huge economic opportunities in different sectors. People come from different areas to grab these opportunities and have a residence here. Below the list of some of the top Projects in Lahore:

Karachi:

Bahria Town Karachi is a benchmark within the landscape of Karachi with its world-class excellent-planned society. This society is sketched with an area concept to supply outstanding lifestyle facilities to its residents and can introduce new benchmarks of community development in Karachi. Below the list of some of the top Projects in Karachi:

Islamabad:

Islamabad is nestled against the backdrop of the Margalla Hills. It is a modern, planned city with wide tree lined streets, large houses, elegant public buildings and well-organized bazaars. It is however; always under construction to improve transportation or develop new housing areas for its growing population. The walkways are shaded, safe, and separated from the traffic by rows of flame trees, jacaranda and hibiscus. Roses, jasmine and bougainvillea fill the parks, and scenic viewpoints show the city to its advantage. Below the list of some of the top Projects in Islamabad:

Rawalpindi:

Rawalpindi is an important administrative, commercial, and industrial centre. Its industries include locomotive works, gasworks, an oil refinery, sawmills, an iron foundry, a brewery, and cotton, hosiery, and textile mills; it also produces shoes, leather goods, pottery, newsprint, and tents. Below the list of some of the top Projects in Rawalpindi:

Faisalabad:

Faisalabad, formerly known as Lyallpur named after the founder of the city is the third-most-populous city in Pakistan after Karachi and Lahore respectively, and the second-largest in the eastern province of Punjab. Below the list of some of the top Projects in Faisalabad:

Gujranwala:

Gujranwala is a city and capital of Gujranwala Division located in Punjab, Pakistan. It is also known as “City of Wrestlers” and is quite famous for its food. The city is Pakistan’s 5th most-populous metropolitan area, as well as 5th most populous city proper. Below the list of some of the top Projects in Gujranwala:

Multan:

Multan is city of Saints, it is best place to live if you belong to either middle class family, rich family or a poor family. The city is now develop city of Pakistan you can get every life facility here easily at low cast. Multan’s foods are very delicious especially mangoes of Multan are world famous. Below the list of some of the top Projects in Multan:

Bahawalpur:

Bahawalpur lies in the heart of South Punjab and is filled with stories that surround the legacies of Kings, Nawabs and their extravagant lifestyles. Below the list of some of the top Projects in Bahawalpur:

Peshawar:

Peshawar is the capital of the Khyber Pakhtunkhwa province of Pakistan. It is the biggest city of Khyber Pakhtunkhwa and is a relatively prosperous city. It is also a cultural and economic hub of Khyber Pakhtunkhwa. The city is famous for its food and tourism as it is one of the oldest cities of Pakistan with a recorded history that dates back to 539 BC. Below the list of some of the top Projects in Peshawar:

Gwadar:

Gwadar, town and seaport, southwestern Balochistan province, southwestern Pakistan. Located on the sandy Nuh headland that juts southward into the Arabian Sea, the town is an important fishing (sardines and sharks) and trade centre. Below the list of some of the top Projects in Gwadar:

Suggestions:

We can see that the Pakistan Real Estate Forecast 2021 suggests investing more in this market as it promises a huge profit in the coming future. The investors should purchase the properties at a low rate so that they can earn more by selling it once the rates are good enough.

Related Cool Links:

Maps of Societies and Projects in Pakistan:

Maps are the only source to view online high resolution 24 hours updated maps of Housing Societies, Schemes, Towns, Villas and Homes in all over Pakistan. Below the list of maps of some of the top Projects in Pakistan:

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Effect of removal of 7E Taxes: Removal of 7E Tax for Transfer (FBR) What is 7E Tax?

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