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.


You may also like to read:





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.

You may also like to read:



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.



You may also like to read:


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.

You may also like to read:

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.

You may also like to read:

Property Tax in Pakistan