The rate of the proposed tax on deemed rental income would be 20 percent under the Finance Bill, 2022. The proposed tax on deemed income from an unutilised property above Rs25 million would not be applicable on the self-owned agricultural land where agriculture activity is carried out.
Under the Finance Bill 2022, tax on deemed income from an unutilized property above Rs25 million including luxury farmhouses has been proposed to be imposed.
A new section 7E (Tax on deemed income) has been proposed to be added to the Income Tax Ordinance 2001. For the tax year 2022 and onwards, a tax shall be imposed at the rates specified in Division VIIIC of Part-I of the First Schedule.—APP
