What is the capital gains tax on selling a property I bought on or after 1 July 2024?

If you bought a property on or after 1 July 2024 and sell it now, the gain is taxed at one rate regardless of how long you held it. The old sliding scale that reduced the tax the longer you kept a plot or house applies only to property acquired on or before 30 June 2024. The rules below are from the Income Tax Ordinance, 2001 as amended to 30 June 2026 and apply to disposals in tax year 2027 (1 July 2026 to 30 June 2027).

What does the law say?

Section 37(1A) says a gain on disposal of immovable property situated in Pakistan “shall be chargeable to tax under the head capital gains at the rates specified in Division VIII of Part I of the First Schedule”.

Division VIII has a Table with two sets of columns. Columns (3) to (5) cover property acquired on or before 30 June 2024, with rates that fall by holding period for open plots, constructed property and flats. Column (6) covers property “acquired on or after 1st day of July, 2024”, and spans every holding period row. It sets:

Seller on the date of disposal	Rate on the gain
Appears on the active taxpayers’ list	15%
Individual or association of persons not on the list	Division I rates, but not less than 15% of the gain
Company not on the list	Division II rates

Status is tested “on the date of disposal of property”, not on the date of purchase.

How is the gain worked out?

Section 37(2) computes the gain as A minus B, where A is the consideration received on disposal and B is the cost of the asset. Section 37(4) says the cost does not include expenditure that is deductible under another provision of the Chapter or that falls under clause (b) of the sub-section.

Section 68(6)(i) then sets a floor on A: for immovable property, component A “shall not be less than the fair market value as determined under sub-section (4) or (5)”, that is, the Board’s notified value or, where none exists, the stamp duty value. A deed price below the FBR value does not reduce the gain.

Worked example (illustrative figures)

Hamza bought a 1 kanal house in Islamabad in August 2024 for Rs. 18,000,000. He sells it in November 2026 for Rs. 24,000,000. The notified FBR value at sale is Rs. 22,000,000. He has no other income in the year.

1. A: the higher of the price and the notified value, Rs. 24,000,000.
2. B: cost, Rs. 18,000,000.
3. Gain: Rs. 24,000,000 - Rs. 18,000,000 = Rs. 6,000,000.

If Hamza is on the active taxpayers’ list: Rs. 6,000,000 x 15% = Rs. 900,000.

If Hamza is not on the list: clause (1) of Division I applies to individuals other than salaried individuals. For income above Rs. 5,600,000 the rate is Rs. 1,610,000 plus 45% of the amount above Rs. 5,600,000.

• Rs. 6,000,000 - Rs. 5,600,000 = Rs. 400,000.
• Rs. 400,000 x 45% = Rs. 180,000.
• Rs. 1,610,000 + Rs. 180,000 = Rs. 1,790,000, which is above the 15% floor of Rs. 900,000.

A smaller gain, not on the list: if the gain were Rs. 1,000,000, the Division I slab for income above Rs. 600,000 up to Rs. 1,200,000 is 15% of the amount above Rs. 600,000: Rs. 400,000 x 15% = Rs. 60,000. The 15% floor is Rs. 1,000,000 x 15% = Rs. 150,000, so the tax is Rs. 150,000.

These non-listed figures assume the gain is the seller’s only income. Column (6) says only “at the rates specified in Division I”. It does not say whether the gain is taxed on its own through those slabs or together with the seller’s other income, and this page does not settle that point.

What if the seller is a salaried individual or a company?

Division I has a separate table in clause (2) for an individual whose salary exceeds 75% of taxable income. Column (6) refers to Division I without choosing between its clauses, so a salaried seller not on the list should read both. A company not on the list is taxed at the Division II rates, and the 15% floor in column (6) is written only for individuals and associations of persons.

How does the 236C tax fit in?

At transfer, section 236C collects 2.75% of the gross consideration from a seller on the list. That is a different base from the gain. In Hamza’s case it would be Rs. 24,000,000 x 2.75% = Rs. 660,000, which is credited against the Rs. 900,000 capital gains tax, leaving Rs. 240,000. The adjustable-or-final page covers the exceptions.

Common mistakes

• Expecting the tax to fall after a few years. The holding period reductions in columns (3) to (5) do not apply to property acquired on or after 1 July 2024.
• Using the purchase-date status. Column (6) tests whether the seller is on the list on the date of disposal.
• Using a deed price below the FBR table as A. Section 68(6)(i) makes the notified or stamp duty value the minimum.

What to check in the official text

Read section 37, section 68, section 236C, and Divisions I, II and VIII of Part I of the First Schedule in the official PDF. The Division VIII Table is printed across several columns and pages, so read column (6) and its proviso in full. The Board’s valuation notifications under section 68(4) are not part of this corpus.