Monday, January 26, 2015

The valuation of your property is too high!

Property tax that's too high to pay!

You have just received a property tax notice showing an amount in thousands! To aggravate the situation, the payment date is just a few days away, and there is a letter along with the tax payment slip that says your property is likely to be sealed in case of non-payment!

You feel harassed, threatened, and insecure!

Is there anything you can do to save money?

If so, what is it?

The answer to first question is "yes". You can save money if the assessment of your property is too high and does not reflect the true particulars of your property as it exists.

You can get the valuation of your property reduced if you can show that the onsite and recorded particulars of your property are different. One of the many things that can make your property tax bill too high is that your property is recorded as rented property, but is actually owner-occupied. For a list of the top five reasons for getting a property tax bill that's too high, click here.


Friday, January 23, 2015

Limiting the Property Tax liability of property tax payers under 150%

Limitation

The government of the Punjab has placed a limitation on Property Tax liability for the year 2014-15 based on the property tax liability for 2013-14. The notification for this limitation reads as follows:

"No. SO.TAX(E&T)3-38/2014. In exercise of powers under subsection (3) of section 3 of the Punjab Urban Immovable Property Tax Act, 1958 (V of 1958), Governor of the Punjab is pleased to remit property tax for all the assessees for the financial year 2014-2015, if tax liability is increased more than 50% from the financial year 2013-14. The property tax only to the extent of more than 50% increase shall be remitted."

To download the notification, please click here: Notification No. SO.TAX(E&T)3-38/2014 

Sunday, June 15, 2014

Reduction in Property Tax Rates 2015-16

The Government of the Punjab has reduced Property Tax rate to 5% effective from July 1, 2015. However, it should not be assumed to be a decrease in tax liability for the year 2015-16 because the properties will be assessed according to the new valuation rate reflecting their true annual rents.

Continued...

Friday, May 30, 2014

Benefits of Computerization of Property Tax Records

In Pakistan, the provinces keep property tax records manually. This manual recording system has a number of limitations, many of which could be overcome by digitizing the records. The following are some of the benefits expected to result from computerization of property tax records. The computerized record will:


  1. Make property tax records more up-to-date in real time sense;
  2. Ensure a transparent valuation list containing details of all properties and their assessment;
  3. Create easier ways to maintain and to update while conducting surveys of properties;
  4. Result in increased revenue collection with a support for identifying defaulters and managing their tax accounts;
  5. Ensure integrity of record to avoid loss by tampering with property tax records;
  6. Facilitate better management of tax by establishing an efficient and effective management information system.

Thursday, April 17, 2014

What is a Kanal?



What is a Kanal?

A Kanal is a unit of land; it is used in Indian Subcontinent for
Dimensions of a Kanal
ONE KANAL
measuring land area. Traditionally, people measure larger piece of land in Kanal. Property developers/ colony developers sell larger houses in 1 Kanal, 2 Kanal, 4 Kanal units.

A Kanal is equal to 20 Marla. There may be variation in measuring ONE Kanal because there are different standards for measuring a Marla. Currently in Pakistan, two different measure are use:

(i) 1 Kanal = 5400 Square feet; and

(ii) 1 Kanal = 5000 Square feet.

If one Marla is 270 square feet, typical dimensions of a one Kanal house is 54X100 Square feet. It means a typical one Kanal house has a length of 100 square feet and width of 54 square feet.


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Friday, April 11, 2014

What is a Marla?

What is a Marla?

A Marla is a unit of land; it is used in Indian Subcontinent for measuring land area. Traditionally, people measure land in Marla. Property developers/ colony developers sell small houses in 3.5 Marla, 5 Marla, 7.5 Marla and 10 Marla units.

A Marla is equal to 272 Square feet. However, this is traditional measure used in British India. Currently in Pakistan, two different measure are use:

(i) 1 Marla = 270 Square feet; and

(ii) I Marla = 250 Square feet.

If one Marla is 270 square feet, typical dimensions of a five Marla and ten Marla house are 27X100 and 27X50 Square feet. It means a typical ten Marla house has a length of 100 square feet and width of 27 square feet. Similarly, a five Marla house has a length of 50 feet and width of 27 feet

If one Marla is 250 square feet, typical dimensions of a five Marla and ten Marla house are 25X100 and 25X50 Square feet. It means a typical ten Marla house has a length of 100 feet and width of 25 feet. Similarly, a five Marla house has a length of 50 feet and width of 25 feet.


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Sunday, March 9, 2014

Property Tax Calculator: Punjab, Pakistan

Property Tax Calulation Image








The government of the Punjab, Pakistan has made a Property Tax Calculator available with the Taxpayer online to help them find their tax liability; this calculator has made property tax calculation possible and easier for them. Previously , the tax liability was based on rents of the properties, but it is now based on average rents of localities by using system of categories. Therefore, your tax liability may change with the change in:


1 - Area of the property;

2 - Covered Area of the property;
3 - Use of the Property; and
4 - Category of the locality in which the property is situated.



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Property Tax Calculator

How to use the Property Tax Calculator

Punjab, Pakistan: Property Tax