The Federal Board of Revenue (FBR) has said that the rates of capital gain tax (CGT) on disposal of immovable properties within four years of purchase have been enhanced from 2.5-10 percent to 3.5-15 percent through the Finance Act, 2021. The FBR in its explanation to changes made through Finance Act, 2021 in the Income Tax Ordinance, 2001, said that a separate block of taxation of capital gain on the sale of immovable property is available under the Ordinance. The gain arising on the disposal of immovable property for more than 4 years is not taxable. The capital gain arising on the disposal of immovable properties is taxable to extent of 100 percent, 75 percent, 50 percent and 25 percent if property is sold within one, two, three and four years respectively. The gain so calculated on the basis of holding period was taxable at the rates ranging from 2.5 percent to 10 percent. Now these rates have been slightly enhanced through changes in Division VIII of Part I of First schedule of the Ordinance; however, the holding period concession remains intact.