Effect of Property Tax Survey 2013 on Tax Revenue
The Property Tax Survey 2013-14 is in process, and the government of Punjab will use it to increase revenue. The government plans to double property taxes by January 2014. A taxpayer who has already paid property tax for the financial year 2013-14 will have to deposit the difference between the old and new tax liability during the month of January 2014.
Although the government has decreased the tax rate from 20% to 10%, the tax liability of a taxpayer will be doubled because of several factors, including various factors affecting the determination of rental value of properties. The government is currently collecting tax on rental value per square feet at 2003-04 rates. When these rates are revised, we are likely to get a 100% increase in rental values (based on a simple approximation that rental values have increased by 10% per year over a period of 10 years, i.e., from 2003-04 to 2013-14).
The government is now collecting about Rs 4 billion in property taxes. After the survey, the collection is expected to be about Rs 7 billion.
AOA Shakeel Sahib,
ReplyDeleteSir I am resident of Faisalabad, Punjab actually I have some commercial property which is rented.
A tax officer came to us and he said we have to pay 150000 tax for this which is six month rent.
When I ask how he said now its own square feet not on rent % can you please tell how they calculate property tax? Also tell it’s me it’s on rent or by square feet my land size is 2 canals.
Please send me email at mrkamran@hotmail.ca. Thank you so much for your time.
I look forward to hearing from you soon.
Warm Regards,
Kamran Mahmood
WS.
ReplyDeleteThank you for your question.
The tax office is right to the extent that tax is calculated on monthly notional rents, not on actual rent. Monthly notional rent is rent per square foot in a locality. Generally, the tax calculated on monthly notional rent is less than the tax calculated on actual rent. However, sometimes the tax calculated on actual rent is less than the tax calculated on monthly notional rent.
When calculated, the property tax should be rent of three months less 10%. In ideal situations it will be same on monthly notional and actual rent. Your case seems to be an anomaly i.e. you are facing excessive tax liability due to calculation of tax on monthly notional rent.
I shall need more details for calculating the exact tax liability and making decision on further course of action on your part. Please send me total land area, covered area, and nature of use of the property via email at shaqeil@gmail.com.
Dear Shakeel,
ReplyDeleteI bought 1 Kanal Double Storey House in Valancia Town Lahore with 5,492 sq ft covered area. It is on the 40 ft road. I am the owner and house is in self use.
Can you help in assessing the property tax.
Kashif Ijaz
Yes, I can help you in determining your tax liability subject to the availability of necessary information.
ReplyDeleteSir urgently cell number
DeleteDear Shakeel Sb,
ReplyDeleteAOA, Sir, I'm living in Gujrat city in rental house. Total plot is measures as 6 Marlas. Its double stories house but I occupied only single story i.e ground floor. Upper story os pwner use but closed. I paid last yeas Rs.1377/- annual tax. Now Excise inspector sent me a notice that property has been re-evaluated as Rs.121300/per year. Kindly evaluate the annual Tax which I have to pay ?
juttcheema786@gmail.com
I'll be highly thankful,
Regards
Mubarak Cheema
W Salam.
DeleteIs the notice you received a notice showing its name as PT-13? or Is it PT-10?
1 - If it is PT-10, the tax payable is Rs 121300/-
2 - If it is PT-13, the tax payable is Rs 27293/-
For calculating your tax responsibility per year, send me area, covered area, and locality of your property. You may also calculate it by going to blog posts:
http://taxingtheproperty.blogspot.com/2014/02/property-tax-calculator.html
and
http://taxingtheproperty.blogspot.com/2014/02/how-to-use-property-tax-calculator.html
Thank you
Dear Sir,
DeleteIts PT-13 and covered area is 5 marlas (1361 sq feet). It is situated in the city mohallah and street. Not a society.
AOA
DeleteIt is PT-13; therefore, the tax payable is Rs 27293.
Any other query?
Sir, Thank You
ReplyDeletesir
ReplyDeleteSir
ReplyDeleteWe are three brother, doing private jobs, having two houses each have two story building. These house are property of our parents. One house property of our father and other is property of our mother.our father was died in 2001. These house are under four marla each house, in mother house two younger brther living with their family and other house our mother live and I, and reming poshan is on rent which is under 10,000 monthly.
1. Are we liable to pay any kind of tax.???
2. How much?? If yes
3. Told us procedure to avoid any notices from tax athouty
We know from realible resouses that window is exampted form
And also taxable property over five marlas
And aslo taxable rental incom is 150,000 annualy
Guide us
Regard
Qasim mehmood And Brothers
03125002246
Badal_30pk@yahoo.com
i have obtain declration degree from court .what is next procedur to transfer the decesed pt 1 ownership to legal heirs and what fee?
ReplyDeleteand document rewuired
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