Capital gains tax is one of the most misunderstood taxes in Pakistan, largely because the rules were overhauled by the Finance Act 2024. The old system tied your property tax rate to how long you held the asset; the new one uses a flat rate that ignores holding period entirely. This guide sets out the current CGT rates on property, shares, securities and mutual funds, explains the cut-off dates that decide which regime applies, and untangles CGT from the 236C and 236K advance taxes people constantly confuse it with. For a full picture of federal taxes, start with our complete guide to income tax in Pakistan.
What is a capital gain and what is taxed
A capital gain is the profit you make when you dispose of a capital asset for more than it cost you. Under the Income Tax Ordinance 2001, two sections govern CGT:
- Section 37 - capital gains on immovable property (plots, houses, flats, commercial units) and other capital assets.
- Section 37A - capital gains on securities: listed shares, units of open-end mutual funds, debt securities and derivatives, collected through the National Clearing Company of Pakistan (NCCPL).
The gain itself is straightforward: sale consideration minus the cost of acquisition and allowable expenses. Crucially, CGT is charged on the gain, not the full sale price. For property, the FBR compares the declared price against its notified fair market value and taxes the higher figure.
CGT on immovable property
The date you acquired the property decides everything. There are two separate regimes running side by side.
Property acquired on or after 1 July 2024
Holding period no longer matters. A flat rate applies on the gain at disposal:
| Seller status | CGT rate on the gain |
|---|---|
| On the Active Taxpayers List (filer) | 15% flat |
| Not on the ATL (non-filer) | Normal slab rates, but not less than 15% |
Property acquired on or before 30 June 2024
These disposals still follow the older holding-period slabs, where the rate falls the longer you hold the asset, dropping to 0% once you cross the threshold for that property type:
| Holding period | Open plots | Constructed property | Flats |
|---|---|---|---|
| Up to 1 year | 15% | 15% | 15% |
| 1 to 2 years | 12.5% | 10% | 7.5% |
| 2 to 3 years | 10% | 7.5% | 0% |
| 3 to 4 years | 7.5% | 5% | 0% |
| 4 to 5 years | 5% | 0% | 0% |
| 5 to 6 years | 2.5% | 0% | 0% |
| Over 6 years | 0% | 0% | 0% |
The lesson for anyone who bought before July 2024: the longer you hold, the lower your CGT - patience is a legitimate tax strategy under the old slabs. For anyone buying now, holding period gives no relief at all.
CGT on shares, securities and mutual funds
Gains on listed securities and mutual fund units fall under Section 37A and are collected automatically by the NCCPL, so most investors never file this tax manually - it is deducted before proceeds reach you. For securities acquired on or after 1 July 2024:
| Investor status | CGT rate on securities |
|---|---|
| Individual / AOP on the ATL (filer) | 15% flat |
| Individual / AOP not on the ATL | Normal slab rates apply |
| Company | Corporate rate (29%) |
| Mutual fund units (filer) | 15% |
Securities bought in earlier years may carry different legacy rates depending on their acquisition date, and very old holdings acquired before securities CGT began can be exempt. Large gains can also attract super tax under Section 4C where total income crosses the prescribed thresholds. Because these interact, high-value portfolios should be reviewed individually - our tax planning and advisory team can model your position.
Advance tax (236C and 236K) is not CGT
This is where most people go wrong. When property changes hands, the registrar collects two advance taxes at the transfer stage - these are separate from CGT:
| Section | Who pays | When | Nature |
|---|---|---|---|
| 236C | Seller / transferor | At transfer | Advance tax, adjustable |
| 236K | Buyer / purchaser | At transfer | Advance tax, adjustable |
| Section 37 CGT | Seller | On the gain | Tax on actual profit |
The 236C and 236K rates are tiered by the property's value and by whether you are a filer, late filer or non-filer, and they change with each Finance Act - non-filers pay dramatically more. Because they are adjustable, the 236C you pay as a seller can be set off against your CGT and overall liability when you file your return. If you are unsure of the exact current slab that applies to your transaction, confirm it before signing - see our filer vs non-filer guide for how status inflates these rates, and use the tax calculator to sanity-check figures.
A worked example
Suppose a filer sells a plot in tax year 2026-27 that was acquired in March 2025 (so the flat regime applies):
| Item | Amount (PKR) |
|---|---|
| Sale consideration / FBR value | 20,000,000 |
| Cost of acquisition + expenses | 14,000,000 |
| Capital gain | 6,000,000 |
| CGT at 15% (filer) | 900,000 |
The 236C advance tax collected at transfer is credited against this liability when the seller files. A non-filer on the same sale would face a higher effective cost through both slab-based CGT and steeper advance-tax rates - a clear reason to be on the ATL before you transact.
How to report and pay CGT
For securities, the NCCPL system deducts CGT before proceeds are credited, and the figure flows into your annual return automatically. For property, you must declare the disposal, the gain and any advance tax paid in your income tax return through the FBR IRIS portal. Keep your purchase deed, allotment letter, payment proofs and sale deed - these substantiate your cost base and prevent the FBR from taxing an inflated gain. Our IRIS filing guide walks through the return, and our return filing service handles property and securities disposals end to end.
Frequently asked questions
What is the CGT rate on property in Pakistan?
For property acquired on or after 1 July 2024, a flat 15% applies to filers regardless of holding period. Non-filers pay normal slab rates, not less than 15%.
Is capital gains tax on shares 15%?
Yes, for listed securities acquired from 1 July 2024, filers pay a flat 15% under Section 37A. Non-filers pay slab rates and companies pay 29%.
Does holding period still reduce property CGT?
Only for property acquired on or before 30 June 2024. Those disposals still use the old slabs that fall from 15% to 0% as you hold longer. Newer acquisitions get no holding-period relief.
Is 236C the same as capital gains tax?
No. 236C and 236K are adjustable advance taxes collected from the seller and buyer at transfer. CGT under Section 37 is the tax on your actual profit.
How is the capital gain calculated?
Sale consideration (or FBR fair market value, whichever is higher) minus cost of acquisition and allowable expenses. The rate applies to the gain, not the sale price.
Are mutual fund gains taxable?
Yes. Gains on redemption of units are generally taxed at 15% for units acquired from 1 July 2024, deducted by the Asset Management Company at redemption.