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 square feet and width of 27 square 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 square feet and width of 25 square feet. Similarly, a five Marla house has a length of 50 square feet and width of 25 square 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

Thursday, March 6, 2014

Pakistan: Property Tax Calculation Formula

In Pakistan, Property Tax is calculated using the following formula:

Property Tax = Value of the Property  X  Rate of Property Tax

Rate of Property Tax is determined by the provincial assembly for collection and assessment of Property Tax.

The Value of a Property is determined by the size of the property and applicable valuation rates. The valuation rates are rates from a notified Schedule or Table of Valuation.

Property Tax calculation in Pakistan is similar across the country with minor changes for calculations in provinces; therefore, you find property tax calculation formula in Punjab similar to the formulas in other provinces.

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Understanding your PT1 form

What are property tax rates in Punjab, Pakistan?

Sunday, March 2, 2014

Punjab, Pakistan: Disabled People and Property Tax

Property Tax Exemption for Disabled Persons - ImageDisability places people in a special class: Special People. The federal and provincial governments and NGO's actively work for the welfare of disabled persons. (List of NGO's working for disabled personsThese people have certain right that government gives them due to their inability to live a normal life like a normal person.  One such special right is exemption from payment of Property Tax up to a certain limit.

Disabled People and Property Tax in Pakistan

Exemption from property tax is available with several classes of persons owning properties and several types of properties. One eaxample of such exemptions is exemption for disable persons. Thus, if a disabled person owns a real or immovable property, he, or she will not pay property tax. However, the person will have to pay the tax in excess of Rs. 1,2150. This amount of tax corresponds to annual value of Rs 48,600.

For viewing a full set of exemptions from payment of property tax, click here.

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Property Tax in Pakistan

Friday, February 28, 2014

Property Tax in Pakistan



Property Tax in Pakistan



Property Tax in Pakistan is a local tax on properties. A local tax is a tax that falls in jurisdiction of a local government as against federal and provincial taxes which fall in jurisdiction of the federal and provincial governments respectively. All the four provinces have their legislation on the property tax assessment and collection. The laws are:
  1. The Punjab Urban Immovable Property Tax Act 1958;
  2. The Sindh Urban Immovable Property Tax Act 1958;
  3. The Khyber-Pakhtunkhwa Urban Immovable Property Tax Act 1958; and
  4. The Balochistan Urban Immovable Property Tax Act 1958.

These laws are similar in nature and mechanism for assessment and collection of Property Tax. Hence, if you are good at understanding and using tax payment system in a province, you can easily translate your knowldge for use in other provinces.

Property tax is calculated on the value of a property; the value in turn is assessed value of the property, not market value.

Property Tax in Pakistan is a local tax, but it is not assessed and collected by the local government. Four provincial governments collect this tax for local governments. They get collection charges of 15% and give the rest of collection (85%) to their local governments in ratio of tax collected from the geographical areas under the local governments.

You may also like to read:

How to use Property Tax Calculator

What are the property tax rates in Punjab, Pakistan

What is PT1?


Thursday, February 27, 2014

Property Tax assessment procedure in Sindh, Pakistan

How Properties are Assessed


Property tax payable for a given property is based on Annual Rental Value (ARV) of that property. ARV, in turn, is assessed according to the reasonable prevailing rental rates for similar properties within the same locality. For this purpose, each mohalla, colony, town, road, street, etc. belongs to one of seven assessment categories (A, B, C, D, E, F, and G). The Excise & Taxation Department has created tables showing various rates per square yard for land area, and per square foot for covered area (i.e., buildings), for each category.

There is one table for residential valuations and one for commercial valuations. Within each table, different rates are given depending on whether the property is (a) used by the owner or rented and (b) on a main road (one at least 30 feet wide) or off road. The residential table shows different rates for the first 500 square yards of land area and 3,000 square feet of covered area. The land area rates in the commercial table also change above 500 square yards, and the covered area rates are divided into three as ≤1,500 / 1,501 – 3,000 / > 3,000 square feet.

There are special rules for certain types of properties, but to find ARV for general residential and commercial properties, use the following method:
  1. Multiply the land area of the property by the applicable rate. 
  2. Multiply the covered area of the property by the applicable rate.
  3. Add the above, then multiply by 12 to get Gross Annual Rental Value (GARV). 
  4. Take GARV less 10% to arrive at ARV.

As a simple example, suppose you own and live in a 1,350 square foot residential house on a 200 square yard lot fronting a main road in a Category A locality:
  1. 200 sq yd x 0.40 = 80 
  2. 1350 sq ft x 0.40 = 540
  3. 80 + 540 = 620 x 12 = 7440 
  4. 7440 – 10% = 6696
Thus, your property's ARV is assessed as Rs 6,696.