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Tax Rules on Rental & Property Income in Pakistan – Explained by FilerNow

Tax rules on rental and property income in Pakistan – FilerNow.com

If you earn income from renting property or selling real estate in Pakistan, you’re legally required to declare and pay income tax under FBR rules. Don’t worry — it’s simpler than you think, especially with FilerNow on your side!

Whether you’re a landlord or property investor, filing your property income tax accurately avoids FBR penalties and helps you stay ATL-listed.

Rental Income Tax Rules

  • Tax is withheld at source by tenants or paid annually.
  • Rates depend on gross annual rent and property type.
  • Expenses like repair, insurance & interest on home loan may be deductible.

👉 File your rental income tax

Capital Gains Tax (CGT) on Property Sale

  • If you sell property within 4 years, CGT applies.
  • CGT rates depend on holding period & property type.
  • Properties held >4 years often get full exemption.

👉 Claim tax exemption/deduction

Required for Filing:

  • CNIC & proof of ownership
  • Rental agreement or sale deed
  • Utility bills or tenant payment slips
  • Property valuation (optional)

👉 NTN Registration for Property Income

Need more information? Contact us on WhatsApp.

Tax Return Filing FAQs

1. Who is required to file a tax return in Pakistan?

Every salaried person, freelancer, business owner, or property holder earning taxable income must file a tax return under FBR law.
👉 Start Tax Return Filing
Not a filer yet? 👉 Become a Filer

2. What documents are needed to file a tax return?

You’ll need your CNIC, salary slip or income proof, bank statement, and any investment or property details.
👉 See Required Documents
No NTN yet? 👉 Get NTN Online

3. Can freelancers or students file tax returns?

Yes. If you're earning income, even from freelance or online platforms, you should file to stay compliant and avoid future penalties.
👉 File Freelance Tax Return
Also check 👉 NTN for Freelancers

4. What are the benefits of filing a tax return?

You become a filer, pay lower taxes on vehicles/property, claim refunds, and appear in ATL (Active Taxpayer List).
👉 Become a Filer Now
Start here 👉 File Tax Return Online

5. What is the deadline for filing tax returns in Pakistan?

For most individuals and businesses, the FBR deadline is 30th September each year. Late filing can lead to penalties.
👉 Avoid Penalty – File Now
Want ATL status? 👉 Filer Registration

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