CGT on Property: The Core Idea
Tax Base Actual Gain
CGT is calculated on profit, not the full selling price.
Separate From 236C Different Tax
236C is advance tax at transfer; CGT is final gain calculation in the return.
Records Matter Keep Proof
Purchase deed, sale deed, transfer documents, and challans are essential.
Formula: Capital gain is generally sale value minus
allowable cost. The exact tax depends on the Finance Act 2026, property type,
holding period, exemptions, and documentation.
CGT vs Section 236C Advance Tax
| Item | Capital Gains Tax | Section 236C Advance Tax |
|---|---|---|
| Applied on | Actual profit/gain | Gross consideration received |
| When handled | Annual FBR return | At transfer/registration |
| Finance Act 2026 context | Apply the relevant CGT provisions and exemptions | 2.75% |
| Documents needed | Purchase and sale cost proof | 236C challan and transfer papers |
Inherited Property: 2026 Cost-Basis Note
Finance Act 2026 includes a property-specific clarification for inherited immovable property. For a later sale, the beneficiary's cost is the fair market value when the property is transferred to the beneficiary. This can materially affect the gain calculation.
Inheritance, gift, and family settlement cases can be sensitive. Keep
succession documents, death certificate, transfer papers, valuation support,
and any family settlement documents before filing.
Records to Keep for Property CGT
- Original purchase deed or allotment letter.
- Sale deed or transfer documents.
- Proof of payments received and paid.
- Section 236C challan from the transfer process.
- FBR valuation support, if used for the transaction.
- Inheritance or gift documents where relevant.
How to Declare Property Sale in IRIS
- Open your annual income tax return in FBR IRIS.
- Enter sale details in the capital gains / property disposal section.
- Enter purchase cost, sale consideration, and dates.
- Claim advance tax paid under Section 236C where available.
- Update your wealth statement to remove the sold asset and show sale proceeds.