FBR spells out tax specifics for real estate

The Federal Board of Revenue has released specifics on Monday for the collection of tax on the earnings of builders and real estate developers, as well as details for collecting income tax from other sources as legislated in the 2024-25 budget. Income tax circular No.1 of 2024-25 was published to explain the implementation of important amendments in the Income Tax Ordinance 2001. Section 7F has been enacted to address the taxation of builders and developers. The circular stated ,that the taxable profit shall be 10 per cent of the gross receipts from construction and sale of residential, commercial, or other buildings, 15pc of the gross receipts from development and sale of residential, commercial, or other plots, and 12pc of the gross receipts if both of the activities as mentioned above are involved.