ISLAMABAD: The Finance Bill 2020-21 has given the formula for collection of luxury tax. Sub-section 3A has been added to Section 37 of the Income Tax Ordinance stating that Capital Gains Tax will be levied on profits from disposal of immovable property (GAIN) under this formula. If the immovable property is owned for one year, there will be zero capital gains tax on its sale. Any immovable property owned between one and two years will be subject to three-quarters gain tax. The immovable property with a holding period of two to three years will be subject to half capital gains tax. If the holding period of the immovable property is between three and four years, then one-fourth of the gain received on it will be levied as capital gains tax. The government will levy zero gain tax on property owned by someone for more than four years.