FINANCIAL JOURNAL

Following extracts are relevant to below topics: Valuation of Property Income From Property Income From Capital Gains "230F. Directorate General of Immovable Property.—(1) The Directorate-General of Immovable Property, (hereinafter referred to as Directorate-General in this section, shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint. (2) The Board may, by notification in the official Gazette, specify the functions and jurisdiction of the Directorate-General and its officers. (3) The Directorate-General may, subject to the provisions and conditions as may be prescribed, initiate proceedings for the acquisition of property for the reasons and purposes specified in sub-section (4). (4) The proceedings under sub-section (3) shall be initiated, where the Directorate-General, on the basis of valuation made by...

CAPITAL GAINS Profit and gain arising from the 'disposal ' of 'capital assets ' is taxable under the head 'Capital Gains' [37(1)] The term 'Capital Asset' has been defined as follows: CAPITAL ASSET [2(10) & 37(5)) Capital asset means property of any kind held by a person excluding the following assets: 1. Any stock-in-trade, consumable stores or raw materials; 2. Any depreciable assets; 3. Any intangible asset on which amortization is allowed u/s 24; and 4. Any movable property held for personal use by the person or his family member dependent upon him.  However. the following assets shall be treated as capital assets : i) A painting , sculpture, drawing or other work of art; ii) Jewelry; iii) A rare manuscript, folio or book; iv) A postage stamp or first day cover; v) A coin or medallion : or vi) An antique. It may be noted that the property may or may not be held for the purpose of business. ...

NOTE: The following discussion is under the provisions of Income Tax Ordinance, 2001 only. Provisions of Provincial Sales Tax on services will be updated over a period of time. The 'rent' received or receivable by a person for a tax year is taxable under the head 'Income from Property'. However, any rent which is exempt from tax under any provision of the Income Tax Ordinance, 2001 shall be ignored while computing the "Rent Chargeable to Tax" (RCT) under this head. [15(1 )]  RENT [2(49), 15(2) to (5), 16]  "Rent" means any amount received or receivable by the owner of the land or the building for its use or occupation by some other person. Generally, the amount received or receivable is taken as rent. However, where the 'fair market rent' (FMR) is more than the actual rent, then the fair market rent shall be taken as rent. [15(4)]  For the purposes of the Income Tax, following amounts are also included in "Rent Cha...