Capital gains tax on property Pakistan 2026-27 (section 37)
Capital gains tax on property (s.37(1A))
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Tax year 2027; First Schedule Part I Division VIII
Inherited: fair market value when it passed to you (s.76(8A), from tax year 2027).
Capital gains tax
Rs 1,500,000
15% of the gain
Gain
Rs 10,000,000
Advance tax at sale (236C), adjustable
Rs 825,000
2.75%
Bought from 1 July 2024 and you are on the ATL when you sell: a flat 15% of the gain, however long you held it.
The 236C advance tax collected when the sale is registered counts against this capital gains tax (and your other income tax) when you file.
Source
Section 37(1A); First Schedule Part I Division VIII (Finance Act 2024 table, unchanged); section 76(8A) (Finance Act 2026 s.5(10)); section 7E omitted (s.5(4))
- Income Tax Ordinance 2001, FBR consolidated text amended up to 20.02.2026 · last checked 4 November 2026
- Finance Act 2026 (Act XLIII of 2026), Gazette of Pakistan, 26 June 2026 · last checked 4 November 2026
Property bought on or before 30 June 2024
| Holding period | Open plot | House / building | Flat |
|---|---|---|---|
| Up to 1 year | 15% | 15% | 15% |
| 1–2 years | 12.5% | 10% | 7.5% |
| 2–3 years | 10% | 7.5% | 0% |
| 3–4 years | 7.5% | 5% | 0% |
| 4–5 years | 5% | 0% | 0% |
| 5–6 years | 2.5% | 0% | 0% |
| Over 6 years | 0% | 0% | 0% |
Our reading for non-filers
Questions people ask
What is capital gains tax on selling a plot in 2026-27?
If you bought it on or after 1 July 2024 and you are a filer: 15% of the gain, however long you held it. If you bought it before, 15% down to 0% by holding period (nil after 6 years).
Is it lower for a house or flat?
Only for property bought by 30 June 2024: a house is nil after 5 years and a flat after 3. Anything bought from July 2024 pays 15% for filers.
What is the cost of inherited property?
From tax year 2027, new section 76(8A): the fair market value when it passed to the heir.
Is the yearly tax on owning property (7E) gone?
Yes. Finance Act 2026 omitted section 7E (tax on deemed income).
Want a tax consultant to check your case?
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