Big news for property owners in Pakistan! The Lahore High Court has given a major relief to people who own ancestral property — that is, land or property that has been in the family for generations.
The court clearly said that if you have been holding ancestral property for more than six years and you decide to sell it, the government cannot charge super tax on that sale. This is because the sale of such property is already exempt from regular tax under Pakistani law — and if regular tax does not apply, super tax cannot apply either.
This ruling came in the case of petitioner Khairullah Khan, where the FBR (Federal Board of Revenue) had demanded over Rs. 11.1 million in super tax. The court declared that demand completely illegal and cancelled it.
Two senior judges — Justice Jawad Hassan and Justice Sardar Akbar Ali — gave this decision and also declared it a legal precedent. This means it will now protect other property owners facing the same issue in the future.
The court also made it very clear that FBR cannot use its own circulars or notices to create new taxes that the law does not allow. The law is above FBR’s internal orders — always.
What does this mean for you?
If you own ancestral or inherited property and have held it for more than 6 years, you are protected from super tax when you sell it. This is your legal right, and the court has now confirmed it.
At Estate Tune, we always keep our clients informed about the latest legal and property news. Whether you are buying, selling, or investing in commercial property in Islamabad, our team is here to guide you every step of the way.
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