ISLAMABAD: The National Assembly Standing Committee on Finance and Revenue has approved a proposal to impose capital gains tax (CGT) on profits earned from the sale of inherited properties and plots, as part of its review of the Finance Bill 2026.
The proposed measure aims to bring greater clarity, transparency, and consistency to the taxation of inherited assets by establishing a defined method for calculating taxable gains.
Under the proposal, the value of an inherited property will be determined at the time ownership is transferred to the heir. When the property is later sold, capital gains tax will be charged on the increase in value between the transfer date and the sale date.
Tax officials explained that if an inherited property is valued at Rs. 8 million when transferred to the heir and is later sold for Rs. 10 million, the Rs. 2 million gain would be subject to capital gains tax.
During the committee meeting, Chairman Naveed Qamar recommended that the valuation date should be linked to the formal transfer of ownership rather than the date of the original owner’s death. The committee endorsed this recommendation.
Officials from the Federal Board of Revenue (FBR) said the proposal is designed to eliminate uncertainties surrounding inherited properties and provide a clear legal framework for taxing gains realized from their sale.
The committee was also informed that inherited assets transferred through family settlement arrangements would be legally protected under the proposed tax regime.
In a separate development, the committee approved a proposal to impose a 5 percent withholding tax on income earned through social media platforms and received via banking channels. It also endorsed mandatory electronic filing of income tax returns to improve tax compliance and documentation.
The recommendations will now form part of the ongoing deliberations on the Finance Bill 2026 before its final approval by Parliament.
