FBR Changes on Capital Gains Tax in Pakistan

The Federal Board of Revenue (FBR) or FBR property tax in Pakistan has lately delivered plans to modify the capital earnings tax (CGT) expenses and protective period for immovable homes.

 These modifications deter short-time period shopping for and selling, save you the use of the true belongings location for black parking cash. As well as redirect investments inside the course of various sectors of the economic system.

 This article will discover capital gains tax in pakistan and keeping durations and their impact on taxpayers.

FBR changes on capital gain 

The FBR has revised tax charges for high-quality retaining periods of immovable houses. These quotes apply to open plots, constructed homes, and flats.

Capital Gains Tax

Capital Gains Tax Rates for Immovable Properties: 

 Here is a breakdown of the brand-new tax expenses:

  1. Holding period as many as 12 months: A flat tax rate of 15% applies to the benefit arising from the disposal of immovable belongings for twelve months.
  2. Holding duration amongst one and years: The tax price is 12.Five% for open plots, 10% for constructed houses, and seven.Five% for residences.
  3. Holding duration among and three years: A tax price of 10% applies to open plots, 7.Five% to constructed houses, and no tax is levied on residences.
  4. Holding duration between three and four years: The tax fees are 7—five% for open plots, five% for built homes, and no tax for residences.
  5. Holding length between 4 and 5 years: A reduced tax price of 5% applies to open plots, even as no tax is imposed on constructed homes or homes.
  6. Holding length between five and six years: A decrease in tax price of two.Five% applies brilliantly to open plots.
  7. Holding length exceeding six years: No capital income tax is levied on open plots.


 The updated capital income taxation scheme best relates to the sale of immovable property in Pakistan. Capital gains from selling residences indoors in Pakistan are ineligible for tax breaks. To correctly recognise their tax liabilities, taxpayers must distinguish between domestic and international belongings transactions.

Changes to the Holding Period Concession:

 The Finance Act of 2022 included a four-year retaining length concession that exempted the benefit accruing from the sale of real estate after this time. 

The preserving durations have since been changed by the FBR as follows:

  • Open Plots: The six-year concessionary retention period has been extended for open plots.
  • Constructed Property: The four-year preservation length concession applies to built homes

About FBR 236 C income tax

FBR 236 C income tax

 Upon registering immovable property, the provisions of section 236C regarding advance income tax for the seller of immovable property. And section 236K regarding advance income tax for the buyer of immovable property apply. Both advance taxes will also have to be paid when transferring real estate.


In conclusion, the latest FBR changes on the capital gain made by the Federal Board of Revenue (FBR) have greatly affected investors and taxpayers. These changes aim to simplify and improve the tax system so that capital gains are taxed fairly and clearly.

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