Property transfers and registrations in Islamabad are handled by the Capital Development Authority (CDA). They are responsible for managing and regulating the development and transfer of properties within the jurisdiction of Islamabad Capital Territory.

Here is a step-by-step property transfer procedure in Islamabad;

1. Collection of Required Documents: In the first step for process of transferring property to a new owner, we collect or prepare all the necessary documents for property transfer, such as the original sale deed, mutation certificate, and tax clearance certificate etc. List of required documents is mentioned below for every case including sale/purchase, gift or inheritance.
2. Determination and Submission of Government Fees: In second step, we will determine all the government fees involved as per prevailing rates and deposit the same into the bank through pay order. It is to be noted here that rates depend upon the property location and the tax payer profile of the seller and purchaser.
3. Submission of Process in Registrar’s Office: We will fill out the property transfer application form and submit it along with all the required documents including fees deposit proof etc. to the designated department at the CDA office.
4. Verification and Scrutiny: The CDA will verify the submitted documents and conduct a scrutiny process to ensure all the requirements are met. Once the verification and scrutiny are completed, the CDA will issue a transfer order in the name of the new owner.
5. Execution of Transfer: The transfer order needs to be executed by approving the necessary documents by the CDA. After the execution of transfer, the new owner needs to get the property registered at the relevant sub-registrar office and obtaining confirmed allotment letter.

The property transfer fee in Islamabad is determined by the Capital Development Authority (CDA) and is based on the value and size of the property being transferred.

Whereas, property transfer tax in Islamabad is typically calculated as a percentage of the property’s value.

The exact rate of fee and tax depends on the property’s location as well as type of the property. Both, property tax and fee in Islamabad is regulated by the Federal Board of Revenue and Capital Development Authority’s regulation.

Here is list of taxes and fees required for property transfer in Islamabad;

For Purchaser: Purchaser of the property needs to pay the following fees and tax;

• 4% Stamp Duty
• 1% Registration Fee
• 3% Advance Tax for Filer & 6% for Non-Filer

For Seller: Seller of the property needs to pay the following fees and tax;

• 3% Gain Tax for Filer & 6% for Non-Filer
• 1% Tax u/s 7-E for Filer & 2% for Non-Filer

Capital gain tax is a tax imposed by the FBR on the profit you make from selling a property. When you sell a property, the capital gain is calculated by taking the difference between the selling price and the purchase price.

If the selling price is higher than the purchase price, you have a capital gain. The capital gain tax is then applied to this gain.

The specific rate of capital gain tax depends on factors such as the duration of ownership and the type of property.

It is important to note here that the seller of the property is under obligation to pay capital gain tax and the buyer is exempted.

Furthermore, it only applies on the immoveable properties such as land, house, building, flat, shop etc.

Following properties are exempted from the capital gain tax liability

1. Property being transferred by a legal heir of a martyr (shaheed) belonging to Pakistan Armed Forces.
2. A person or dependents of the person who dies while in the service of Pakistan armed forces or Federal or provincial government.
3. A war wounded person while serving in Pakistan Armed Forces or Federal or Provincial Government.
4. An ex-serviceman and serving personnel of Armed Forces or ex-employees or serving personnel of Federal and provincial governments, being original allottees of the capital asset duly certified by the allotment authority.
5. Immovable property that is owned by a local or provincial government.
6. Agricultural land where agriculture activity is performed by a person.