Understanding Buyer & Seller Tax Obligations in Property Transfers

During the transfer of DHA Lahore property, both buyers and sellers have specific tax liabilities:

For Sellers:

Advance Tax adjustable (FBR Section 236C) is paid by the seller at the time of transfer.
The advance tax rate on sale varies based on the holding period and value:
- 4.5% for property up to PKR 50 million
- 5% for property between PKR 50 million and PKR 100 million
- 5.5% for property above PKR 100 million
Non-filers face higher rates, up to 11.5%.
Gain Tax is paid the seller on the profit earned from the sale.
Gain tax reduces to 0% if the property is held for more than 6 years.
The seller is also responsible for clearing any outstanding dues with DHA before transfer.

For Buyers:

Advance Tax (FBR Section 236K) is paid by the buyer at the time of purchase.
Advance tax rates depend on filer status and property value:
- For filers, 1.5% to 2.5% of property value depending on the price range.
- For non-filers, rates are higher, up to 18.5%.
Buyers pay stamp duty (around 2% of the property’s declared value).
Other transfer-related fees include DHA transfer fee, membership fee, and documentation charges.

Both parties must comply with these tax obligations for legal and smooth ownership transfer in DHA Lahore. The complete process also requires submission of original documents, payment of all dha fees, and obtaining necessary certificates from DHA.

These tax liabilities ensure proper compliance with FBR tax laws during property sales in DHA Lahore.

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Tax liabilities for buyers and sellers during transfer

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Tax liabilities for buyers and sellers during transfer