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The Real Purpose of Amnesty Scheme of Pakistan 2019

The Real Purpose of Amnesty Scheme of Pakistan 2019

Amnesty Scheme 2019 Pakistan The amnesty or asset recognition scheme announced by the PTI government envisages taxing all assets other than immovable property at 4 percent, domestic immovable property at 1.5 percent, foreign liquid assets at 6 percent, and unexplained expenses at 4 percent. 5 percent. The standard surcharge, which can be called waiting, is up to 40 percent of the total tax amount. Their 6 percent will be 8.4 percent. It is obvious that this is a comprehensive system covering all aspects of the informal economy. Benami Rules: In an effort to speed up the process of documenting the economy, the federal authority has enforced the Benami rules to initiate the process of attaching immovable and movable goods to Benami and intercept transactions of these goods in fictitious names. It was also authorized to take action against the Benamidar or the fictitious person on whose behalf the Benami property was transferred or held. Go for the legal way: Acting legally, paying taxes and keeping movable and immovable property lawful is not only the legal responsibility of every citizen but also a moral obligation to the state and its fellow citizens. At the same time, the government is committed to ensuring that the benefits of development and other public welfare policies are shared by all citizens. This is only possible if the economy is properly documented and the government is able to generate sufficient domestic resources. A country cannot be run for unproductively issued loans. The current economic situation makes it imperative for the government to undertake credible and concrete steps to remedy the diseases affecting the economy. The best way to do that is to increase the formal economy. Citizen and Business Community: The government, for its part, has already made some hard and difficult decisions, some of which have taken some unprotected sections of society, but they were necessary to stem the rot. They have led to a decline in the current account and budget deficits, the effects of which will become apparent over time. While the government is working hard to lift the economy out of the sandpit it is in, it is also up to the citizens and the business community to appreciate these measures in their true perspective and to make their contribution to the success of these efforts indispensable secure future prosperity, even if this could cause some difficulties in the short term. The land belongs to all of us, and its future development and prosperity depend on our sense of patriotism and the fulfillment of our obligations to the state as its citizens.

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DHA Gujranwala A Golden Chance for Investment

DHA Gujranwala A Golden Chance for Investment

DHA Gujranwala is an emerging project of Defence housing authority. Soon we can see a luxurious housing society with thousands of residents living and enjoying their life at full with DHA Gujranwala. Why one is at a benefit with an investment at DHA project? It is because it provides you some of the following advantages: Sense of Luxury Sense of Security Improved Social life Nearby Recreational activities Standardized Education System Attractive landscape and well-designed pathways The modern design of the building and infrastructure Day by day more people are attracted toward investment in DHA Gujranwala. As Gujranwala is on the seventh number according to its population. For someone who is living in DHA will be provided with the latest amenities. Amenities such as electricity, water supply, and gas will be part of development. The building is constructed with the best quality material and infrastructure is made with the help of high-class engineers and architects. By living in DHA society one will feel and witness the best living standard in Pakistan. Why Invest in DHA Gujranwala right now? We are suggesting you make an investment in the hotspot which is DHA Gujranwala. The previous DHA projects such as DHA Islamabad, Karachi and Lahore are highly successful and property prices are quite high in the current decade then it was used to be. Currently, the development at DHA Gujranwala has started but property prices are still lower as compared to the prices of DHA in other cities of Pakistan. They are high chances associated with these properties that prices will go up. Facilities for DHA Gujranwala: One can observe themselves that DHA has provided their residents with the outclass and world’s best facilities to improve the standard of living at the society. The society is well equipped with the latest security system and plan to increase the safety and enhance the wellbeing of residents. the educational facilities provided at the DHA society in Gujranwala is up to date and you won’t need to travel far to avail quality education. Hospital and clinics will be available in each block as health can’t be compromised and it is the utmost requirement for a quality living. Other facilities for recreation and fun will be there from which you will feel connected to society. Social life shouldn’t be compromised so DHA club, parks, restaurants will be there to serve the purpose. No matter what DHA housing scheme is trying their level best to provide their residents with the best service possible. Properties available for sale in DHA Gujranwala You can avail two types of properties in DHA Gujranwala, residential and commercial property. The residential properties include different types of property plans but the most famous among them was the 5 marla and 10 marla scheme. It is believed that this much area is convenient for many Pakistani’s to buy and build their houses on. There is plenty of demand for these plots and the price range for 5 marla plot is starting from 20 lakh PKR and onwards. You can also find other sizes of plots in the future as the development process is still going on. The commercial properties have a higher price as compared to the residential plots they are starting from 1.5 crores to 2.5 crores. These prices are according to the current survey and it is expected that there will be growth in demand as well as property prices. How to Book a file for the property at DHA Gujranwala: To avail this golden opportunity and book a property in DHA Gujranwala, you have to visit the office. The file for booking a property is estimated to start from 50,000 rupees and they also have different payment plans available according to the buyers convinces. The payments plans are in the form of cash and installment. The balloting of the properties was conducted at the beginning of 2019 and plots of 5 marlas, 10 marlas, 1 and 2 Kanal was balloted. In the balloting process applications were obtained for different property size and now they all are the stakeholders of the society. If you want to enjoy the High end and luxurious lifestyle you should avail this golden opportunity right now. This is an investment that you won’t ever regret as it will help you to gain only. Look no further and visit DHA Gujranwala office right now to book a file. Start living in the best neighborhood by now and improve your standard of living.

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Bahria Town Tax Rate

Bahria Town Tax Rate

New Tax Rate of Bahria Town Karachi The Federal Board of Revenue has recently revised the official real estate value of land and developed land in Bahria Town Karachi. Under the revised valuation, buyers and sellers must pay taxes according to the new property values ??set by the FBR. Each project in Bahria Town Karachi has received different values. Old Precincts, Precinct 19 Apartments, Bahria Heights, Quaid & Iqbal Villas, Old Buildings, Bahria Sports City, Bahria Golf City, Bahria Paradise, Midway Commercial, Old Commercial and Jinnah Avenue Commercial and Farm Houses have different values ??according to FBR rating.

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Pakistan Bikers Challan Use Helmet or Be Ready for Challan

Pakistan Bikers Challan Use Helmet or Be Ready for Challan

Government of Pakistan increases the fines on traffic violation to reduce the ration of violation of rules. Riders without helmet will also be the culprit of violation. Karachi, the city of lights, is one of the most populated cities in the world, which has led to an increase in traffic. Without proper management, this has led to a steady increase in motorists who violate the law. It is expected that fewer laws will be violated due to an increase in the fine. Any person riding without a helmet must now pay a fee of Rs. 1,000. The Karachi traffic police have now come up with a plan to stop or at least reduce the number of rule violations in the city.

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Government New Property Tax Implementation 2019

Government New Property Tax Implementation 2019

The government has made a strong decision to better implement current taxes on the real estate sector. Representing a substantial capital increase of 129 percent in just six years. The government has made a strong decision to better implement current taxes on the real estate sector in order to prevent the prevailing trend of investment in real estate without paying the corresponding taxes. The capital gain from immovable property is taxed separately after the holding period of a property. It is taxed at normal tax rates under normal taxation. 1. It is proposed that income from capital gains on open land should be taxed at 100% if the open land is sold within one year and for a period of up to ten years. It is also proposed that income from capital gains from built-up real estate on sale be taxed on similar items over a five-year period. 2. If a property is sold within one year, it will be taxed as normal income. 3. A tax is levied on 3/4 of the income. If the same property is sold after one year. This is a permanent tool to lighten undeclared money that violates international tax standards. It is therefore proposed to deduct the tax of 3% of the difference. Holding TAX: The FBR had introduced a rating table for real estate in major cities. The prices are lower than the actual market value. It is expected that real estate FBR rates will be closer to 85% of the actual market value. There is currently no withholding tax on the sale of a property if the property is held for more than three years. This is in line with the holding period for the taxation of capital gains, which is also three years. It is proposed to levy withholding tax on the sale of a property irrespective of the holding period in order to adapt it to the proposed treatment of capital gains. Buying a property via a bank instrument: In order to capture the true value of the buy / sell transaction, it is proposed that persons in immovable property acquire a market value of more than Rs 5 million, and in the case of movable assets, one million or more A bank instrument (money order or bank check) as an owner check and a penalty of five percent of the FBR value of immovable property is proposed for a breach of this requirement. Real estate offers random profits for Investors: Consider this as an example of the fact that someone who had invested one million rupees in a property in Karachi at the end of 2013 would have achieved a market valuation of Rs.2.3 million in 2019, representing a substantial capital increase of 129 percent in just six years. Some of the major industrial groups have preferred to invest their retained earnings in real estate - both residential and commercial (shopping centers and restaurants) rather than expanding their industrial base. The government should relieve real buyers by lowering the withholding tax on the sale and purchase of real estate. A threshold of the value of the property amount of Rs. 4 million is to be exempted from the tax. The government should introduce mechanisms to prevent abuse of this exemption, while the taxes for the holding period of the property should be exempted for a period of 10 years.

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Brace Yourself for Inflated Prices with Dollar Hitting all Time High

Brace Yourself for Inflated Prices with Dollar Hitting all Time High

Brace Yourself for Inflated Prices with Dollar Hitting all Time High in Pakistan Since the beginning of the year 2019, Pakistani rupee has been heading down the slope with the dollar escalating along the upward trajectory, gaining an astonishing value of 157.1 against Pakistani rupee. In the last few days, the graph of the rupees’ power against US dollar decelerated, losing 5% of its value against US dollar, thus making it the worst performing country in 13 currencies in Asia. Since the beginning of the dark clouds of inflation on the economy, the rupee has lost 21% to its value to the dollar. This deprecation started a long time ago as, by the mid ‘70s, it lost 50% of its value to dollar and almost 90% in ‘90s. However, the nation is set to face the wrath. According to the President Forex Association of Pakistan Malik Boston, the rupee is expected to undergo further devaluation by 15-20 % by the end of this year. “Until the foreign exchange reserves situation improves, there is no chance of the dollar coming down,” he said. Experts and analysts believe that the sudden devaluation of the currency against the dollar is due to the consensual, undisclosed commitment of the government with International Monetary Fund (IMF) authorities to release $6 billion funds. However, the State Bank of Pakistan deemed this downward plunging of the PKR to market dynamics. The uphill surge of the greenback puts a burden on the economy of the country not only individually but collectively on the whole nation with external debts shooting to set a record of $106 billion. If the dollar gains 1 rupee against Pakistani currency, it increases the total debt by an astonishing amount Rs100 billion. A weak rupee, against the US dollar, means inflation which not affects every aspect of quality of life of Pakistani citizens. Inflation spiked to 9.9% in May 2019. Increased rates of petroleum products, household items, electricity, food, transportation, crashed stock exchange, and fragile cottage industries struggling to survive puts an extra burden on the weak shoulders of the general public of Pakistan where the poverty ratio is already striking high. The domestic price of imported goods will nudge up further, crashing the whole market. The government proposed that devaluation of rupee will boost exports business, getting escalated value of their items than before. However, there is an increment of only 0.12% export since 2018, thus proving the government claims false and illogical. Inflation upsurges affect the poor the deepest both directly, by increasing the prices of daily household items and indirectly, by not affording the medical and educational facilities. Pakistan’s economy faced a major setback in industrial, agricultural and services setup. NEPRA increased the electricity tariff by Rs. 1.4902 per unit to collect 189.6 billion rupees from power consumers over the next fifteen months. The prices of 24 karat gold ballooned by Rs2700 on Friday, 15th June 2019, soaring the 1 tola price to Rs 75900 as compared to the previous trading price of Rs 73200. The State Bank of Pakistan lifted the interest rates of 12.5% saying,” the inflation pressure is set to continue for some time”. Nevertheless, it also stated, “It will continue to closely monitor the situation and stands ready to take measures, as needed, to address any unwarranted volatility in the foreign exchange market.” The positive feedback of the upturned value of the dollar and rising inflation rates has put the economy of the country in a vicious cycle. Zafar Parcha, Secretary General of Exchange Companies Association of Pakistan, claimed that the depreciation led to haunting the investors and created a panic situation by heaping more pressure on the currency. $10 billion have already been added to Pakistan’s debt since September 2018. According to econometric models, if the same trend continues in the open market then the debt is expected to increase to $123000 by the year 2020. A new wave of inflation is set to engulf the country, putting more pressure on the people of Pakistan under the rising weight of prices in NAYA Pakistan and dumping its economy into a swamp. The State Bank of Pakistan must monitor the increasing trajectory to greenbacks against the Pakistan rupee and correct the imbalances ignore to stabilize the economy of the country. The government cannot do much to avoid depreciation when needed, but they can make them less dramatic by allowing a more flexible exchange rate regime.

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An alert for asset declaration before the end to amnesty scheme

An alert for asset declaration before the end to amnesty scheme

An alert for asset declaration before the end to amnesty scheme, Declared by Federal Board of Revenue The federal board of Revenue has demanded a declaration of assets through the asset declaration scheme. The scheme is in the form of amnesty, which means that the past offences of not paying taxes on the owned but undeclared properties or asset will be ignored. The ignorance is only granted for the past offences but once the asset is declared, the owner has to pay full tax for the current and upcoming years. The amnesty is granted in a way that a very reduced percentage of tax is subjected to be paid to the government without any additional fines or surcharges or penalties such as imprisonment. It has been disclosed by the Government of Pakistan that the federal board of revenue is fully aware of every misconduct that is going on. They have updated records of the property holders and in case someone is still not ready to gain benefit from the amnesty scheme of asset declaration will face trial and charges. The time limit has been issued and now it's an alert moment for those who are ready to declare their assets by using the benefit of asset declaration. Prime Minister of Pakistan has assured that the tax obtained from this scheme will be used to pay off heavy debt. He referred this debt as Quick Sand for Pakistan and the tax collected will help Pakistan to pull itself out from the depths of poverty. The last date for asset declaration through asset declaration scheme is 30th June 2019. In case any person failed to declare their assets on the given date will be subjected to a default surcharge for which the person will be liable otherwise strict action will be taken by the Federal Board of Revenue. According to the Federal Board of Revenue whoever is facing consequences due to the non-declaration of assets have to face full penalty with the payment of taxes at a full rate without any amnesty. As well as the person will be charged to the imprisonment of seven years or more under the Benami Transaction (Prohibition) Act, 2017 and up to five years of imprisonment under the act of Income-tax ordinance 2001. Tax is subjected to the fair market value of the asset and in case of any revision, the value of the asset cannot be decreased. In case the value is decreased the owner is subjected to pay tax on the previous amount that was relatively higher than the current amount. Benefits for the person who is declaring assets before 30th June under Amnesty Scheme: Ignorance on the past offences of not declaring assets, expenditure, and sales to the government. Ignorance on the past offence for not paying taxes to the government and a minimum tax rate will be applied to the declared value of assets. The subjected person will be safe from humiliation and penalties If a person is a non-resident of the state of Pakistan, he or she can still take advantage of the amnesty scheme and declare their assets. A person can declare their foreign assets and business under this scheme as well. NADRA has shared all of the details of every citizen to the federal board of revenue and database is available to be accessed by the citizen to check where they need to declare their assets or not. This is subjected to a fee of 500 Rs and any citizen can check up on their records from NADRA. The last date for the declaration of assets, expenditure, and transactions through the amnesty scheme is June 30th, 2019. No extensions are planned to be granted until now and whoever will delay will face charges and penalties. The declaration will be done according to the act of Income-tax ordinance 2001 and Benami Transaction (Prohibition) Act, 2017. The declaration of assets can include the justification of sources of finance as well.

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The new finance bill have high penalties for the tax offenders

The new finance bill have high penalties for the tax offenders

The time has come for those who were not paying taxes on their enormous wealth. Now the government of Pakistan has made it clear through their new law that every citizen who is an owner of a property is liable to declare its value and pay a certain amount of tax to the income tax authority. The last date of asset declaration under the amnesty scheme is 30th June 2019. After 30th June strict actions will be taken against those who have done a legal offense of not declaring their assets. According to the new finance bills, those who haven’t declared their properties according to the Benami Transaction (Prohibition) Act, 2017 and Income tax ordinance 2001 will be facing multiple types of penalties which are approved by the parliament of Pakistan. Section 182 of income tax ordinance has been revised and the finance bill for 2019 have shown a massive increase in the penalties which range from Rs. 25000 to Rs 100,000. Especially for those who are non-filers will be subjected to the payment of minimum Rs 40,000 due to non-filling of their tax returns. If a person has calculated their returns with errors and submitted it without correction will be penalized for the amount of Rs. 30,000 or more. Next, if a person was liable to furnish a return but failed to do so will be paying a penalty of 0.1% of the taxable income every week or amount of Rs. 100,000 whichever is higher until he is done with the submission. If the error in the calculation is repeated and this mistake is done in a single year than the person is subjected to pay a penalty of 3% or Rs. 30,000 whichever is higher. This penalty is charged on the person when the taxable amount is higher and tax payment is less than what it is supposed to be paid. According to the finance bill 2019, any person who is involved in the purchase of any immovable asset and it's market value is higher than 5 million rupees. In this case, if the payment is done through cash or bearer cheque then the person has to pay 5% as a penalty upon the property price determined by the government. For the offshore investment offense, the investor will be paying a penalty of Rs. 100,000 or 200% of the amount of tax for which the person was charged an offense. The payment will be done to the appellate tribunal under the income tax ordinance 2001. Movement of a property from a specified region or territory to any unspecified region or territory is also subjected for a penalty. The amount for such penalty is equal to Rs. 100,000 or 100% of the amount for the tax payment whichever is more will be paid to the income tax authority or the appellate tribunal. Finally, If any person is involved in any sort of offense of offshore tax hedging as an advisor or guide is subjected to a penalty of Rs. 300,000 or 200% of the amount of tax which was advised to be evaded, whichever is more. The amount of penalty will be submitted to the income tax authority or the appellate tribunal. Any person who is liable of filing a tax return and intentionally failed to do so or have submitted a return in which declared the value of assets are less than the fair market value is subjected as an evader of law. Under the income tax ordinance, all offenders and evaders will be penalized after the given date of submissions which is 30th, June 2019. No files will be entertained with the amnesty scheme and after that and heavy fines will be imposed on the offenders.

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