Property deals, salaries, car purchase: FBR notifies change in WHT provisions

 

The FBR has recently issued some change in the withholding tax applied on sale/purchase of immovable property, purchasing motor vehicle and salary income and provided all the chief commissioners IR to supervision the withholding sections deductions, as envisage in the changed sections of the Finance Act 2024.

Regarding, the WHT under section 236C on the sale of immovable property, a differently mentioned rate is shown as per the status of the filer, the late filer, and the non-filer as mentioned in the notification dated 01/07/2024. Also specifically identified in rates is the difference in rates based on the amount of consideration received by the taxpayer. A new category of late filers has also been added for the individuals who are appearing on ATL but have not filed the return till the extended due date.

The notification said deduction of WHT would be 3 percent where the gross amount of the consideration does not exceed Rs 50 million, 3. 5 percent where it Exceed Rs50 million and 4 percent where the consideration is more than hundred million in case the taxpayer is a filer.

It should be noted that, if the taxpayer fails to file within the due date, then the tax rates are 6%, 7%, and 8% for all the three categories of consideration as have been explained in the above para.

But, it is to be pointed out that if the taxpayer is a non-filer, the rate to be levied is 10 percent of the gross amount of consideration received, said the circular.