ISLAMABAD: Federal Board of Revenue (FBR) has exempted the assets real (gairmanqola) given as gift to blood relatives from withholding tax.
According to the sources, FBR has cleared in a circular issued that withholding tax according to Section 236 of Income Tax Ordinance 2001 will be imposed if the assets real are gifted to other relatives than the blood relatives.
Sources added that FBR informed the field formations that if assets real are gifted to wife, brother, father, mother, daughter, sister, brother and son will be consider as real gift and will be exempted from withholding tax but gifted other than the said relatives will not be consider as gift and the withholding tax will be imposed on the transfer of property.
