Property buying and selling: Advance tax cut to shake real estate market

The government approved changes in the finance bill for taxation on property transactions. Under the new rules, property buying and selling will now be taxed at revised rates across the country.

According to details, a seller of property will now pay 2.75 percent advance tax on the total sale value. This change is expected to impact the overall cost structure of real estate deals.

At the same time, buyers will also face a new tax burden under the updated system. They will pay 1.25 percent advance tax based on the fair market value of the property.

This means that property transactions may become more expensive in terms of total business cost. Many experts believe it could slow down activity in the real estate sector.

The approved finance bill also brings changes for corporate taxation in different sectors. Banks and fertilizer companies will now face higher tax rates on larger income brackets.

From July 1, banking companies and fertilizer sector firms earning more than Rs150,000,000 will pay 10 percent tax. Other corporate companies earning above Rs500,000,000 will be charged 8 percent tax.

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These changes are part of the government’s broader effort to adjust revenue collection. Analysts say the new structure may balance revenue needs but could also increase pressure on business sectors.

The government has reduced and adjusted taxes but also introduced new layers of charges. Property buyers and sellers will now both feel the impact in different ways. Businesses may see higher costs, which could slow activity in some sectors.