What are the property tax rates in Punjab, Pakistan, for 2013?
The rates of property tax are defined at two levels:- The rate of notional rent for a locality; and
- The rate of tax on the Annual Rental Value of a property.
The rate of property tax at the first level is defined by the locality in which a property is situated. The rate of property tax on Annual Rental Value is 10% after December 2013. Up till December 2013, the rate of property tax on Annual Rental Value is 20%.
Example of Property Tax Calculation
If a property has a notional rent of Rs 2,000 per month, then its tax is calculated as follows:Gross Annual Rental Value = Rs 2,000 x 12
= Rs 24,000
Annual Rental Value = Gross Annual Rental Value - 10%
= Rs 24,000 - 10% of 24,000
= Rs 24, 000 - 2,400
= Rs 21, 600
Property Tax before January 1, 2014 = 20% of Annual Rental Value
= 20% of Rs 21, 600
Property Tax before January 1, 2014 = Rs 5,400
Property Tax after January 1, 2014 = 10% of Annual Rental Value
= 10% of Rs 21, 600
Property Tax after January 1, 2014 = Rs 2,160
You may also like to read:
Top five reasons of too high Property Tax Bill
What is Property Tax, Punjab Pakistan?
Personal Properties in Pakistan: Cars and Token Tax
Online Property Tax Calculator
Old Rates of Property Tax Are There Again
dear sir what if the property remains empty due to death of the owner for a specified period. who will pay the tax and what would be the rate of the tax ?
ReplyDeleteThank you for your query.
DeleteThe rates of property in "Self-Use" and "Closed" or "Empty" are same. Hence, if the property was in Self-Use of the deceased prior to death, there will be no change in tax liability.
On death of the owner, the property is to be transferred (not automatically) to the legal heirs. Among the legal heirs, widow and minor children can avail exemption from payment of property tax.
sir please tel me the tax rate on 2marla and 212 feet house which we recently buy and also have given on rent .
DeleteThere is no Property Tax on such house as measuring two marlas only even if you have rented it. The Property exists in tax records, but the owner has to pay no tax.
DeleteYou may have to pay tax arrear of years prior to 2003-04, if any such arrears exists.
respected sir
ReplyDeletewe have given a house of 14 Marlas on rent.
Half (7 marlas) are constructed while the other half is empty but the boundary wall is covering the whole 14 Marlas.
Recently, an income tax officer has came to our home, he has said that a new survey of government is being carried out, so u have to give me a bribery in order to avoid the tax on your rental house.
he told us that if we will give him bribery then our rental house Tax will not be enrolled in government record, and we can avoid tax.
He threatened us that now government is taking 3 Rents of house each year as Tax amount .
please elaborate that what should we do and what would be the amount of Tax each year officially ,as we collect about 8000 rupees as monthly rent.
Thank you for your query.
DeleteI shall not recommended the bribery in this case; you need to pay correct tax as a national responsibility.
The amount of tax per year is not on actual rent of Rs. 8000/- per month; the tax is on Notional Rent of your area (locality). The notional rents are average rents and are normally on lower side till today.
Up to 31.12.2013, the tax rate is 20% and 25% which approximates notional rent of three months less 10% rebate for repair. However, the rate of tax is 10% from 01.01.2014 which will be slightly higher then the rent of one month.
You should not get your property excluded from government records in any case. The property number assigned to your property is identification of your property. It is like identification mark on your motor bike (Number Plate).
Dear Sir,
ReplyDeleteI would like to know what is the property Tax rate for a Hotel(Renting Rooms) for year 2014.
Thank you for your query.
ReplyDeleteThe rate of tax is the same for all the properties i.e. 10% of the Gross Annual Rental Value. However, the method of calculation of Gross Annual Rental Value is different for a hotel renting rooms. It is based on the total of room rents for a full year of 365 days. First, you calculate the full room rent for a total year and take 10% of this room rent as GARV. The GARV of other portion like reception, shops, halls, etc will be added to this value.
In case you need further help in calculation of your Property Tax Liability, feel free to contact.
Thank you for the reply.
DeleteAOA Sir, how much is the Property tax rate on 5 Marla, 10 Marla and 20 Marla and tax rate on rent in Islamabad?
ReplyDeleteIslamabad is outside Punjab; the Punjab Urban Immovable Property Tax Act is not applicable in Islamabad. Islamabad, the capital territory, has its own laws and rules for property tax/house tax.
DeleteThe tax position in Punjab is as under:
The Tax on a self occupied house in an Area falling in category D is:
1- Rs 648/- for five marlas;
2- Rs 1256 for ten marlas; and
3- Rs 2592 for twenty marlas.
It is assumed that the house have two storeys and have covered area of 1350, 2700, and 5400 square feet.
A.O.A sir please give us the complete formula like how to calculate ARV ,what is catagery A B C D which rates apply ? which area fall under which catagery ? textiles mills situated at sargodha road fall in which catagery ? i mean how we can calculate exact propery tax,or recommend any link to understad this in Panjab FSD.
ReplyDeleteThanks
Formula to calculate Annual Rental Value (ARV)?
DeleteCalculate:
1- (Land Area of a property in square yards) X (Rentability);
2- (Covered Area of a property in square feet) X (Rentability);
3- Add 1 and 2 to get Monthly Notional Rent;
4- Multiply the Monthly Notional Rent with 12 to get Gross Annual Rental Value (GARV);
5- Deduct 10% from GARV to get Annual Rental Value of ARV.
What is a catagery?
A category is rentability of an area. It is denoted by an Alphabet (A, B, C, etc.) and has a numerical value (Rs 12, 10, 7, etc.) showing the rentability both in square feet and square yards. For example, category E has a numeral value 4 which means Rs 4 per square feet or Rs 4 per square yard.
For a property, the rentability is applicable to the land area in square yards and covered area in square feet.
How category is applied?
A category is assigned to an area by an assessing authority (Excise and Taxation Officer) based on rents prevailing in the area. In fact, a category is nothing more than rent of one square foot in an area.
Which area fall under which catagery?
You will need to consult the assessing authority of your area to know category of your locality. Presently, the valuation table showing area-wise category is not available in consolidate form.
What is the category of a textiles mills situated at Sargodha road?
For this information, please consult with the Excise and Taxation officer of your District.
How can you calculate exact Property Tax?
The Property Tax is currently 25% of Annual Rental Value if it is more than Rs. 20,000 otherwise it is 20%. Staring from 01.01.2014, it will be 10% of Annual Rental Value. You can calculate Annual Rental Value using the formula above.
However, for calculating exact property tax for a particular property will still remain an individual assessment case. It is because assessment varies with three major variables: Size of the property, nature of use, and rentability. For example, applicable rates are different for Godowns and Factories, etc. If you want to get to an exact property tax liability in a particular case, send me the details of property plus category of your area. You will have to get the category from the Excise and Taxation Officer of your District.
Thanks you very much. I am sending you detail of Property please reply as soon as possible.
ReplyDeleteTotal Area of Land :36665
Total Covered area :28744
Situated at sargodha road Faisalabad
Catagery :D i think
land is being use for a processing unit total area consist of 2 main hall 3 store offices bath, kitchen ,1252 Sqft is Ist floor consist of offices.
Please sir Rely me today.
Please give me your email id
DeletePlease give me your email id; i shall send you the assessment file (PDF) of your the property.
ReplyDeletewaqasdut@gmail.com
ReplyDeleteSir Please email me as soon as possible.
The assessment file has been sent.
DeleteThank u sir , Is this calculation with the latest formula (Increase of 400%)...??
ReplyDeleteNo; this assessment is based on the previous valuation table in force. The new valuation table is not in force and is in process of being approved.
Deletehi sir
Deletei live with my father and 2 more brothers with their families
we all are independent
my brother is in armed forces
and father is retired from army
we live in 4.5 marlah house
cover area 1300 square feet (2 rooms included ) on second story
the house is owned by my (late) mother
is this house taxable or not
if yes whats then what tax rate applies.
The question stands replied at the post "Five Marla Tax Exemption"
ReplyDeletei am a married woman of 28, i want to bye a plot of 1 kanal. if i bye from my own name is this plot taxable or not
ReplyDeleteThank you for your query.
DeleteThe status of being a married woman, or of 28 has no effect on your Property Tax liability. However, a plot is not taxable.
AOA, Dear Sir, can u tell me that property tax is levied on Sundar Industrial Estate, if yes so what will be the tax of 1 acre.
ReplyDeleteW Salam,
DeleteThank you for your question.
I do not have access to specific piece of legislation for including Sundar Industrial Estate in the Rating Area for the purpose of Property Tax. However, with the promulgation of the Local Government Ordinance 2001, most of the areas are now rating areas and tax is being assessed and collected from these areas. You may refer to Section 116 and 117 of the said ordinance.
As for Property Tax on One Acre is concerned, the tax depends not only on measure of land, but also on the nature of its use and its status of being let out or not.
I consulted with Inspector Incharge, he informed me that they measured total land in yards and calculate covered area in square feet (both added) and multiply by 0.25. The rent of the month assessed, and multiply by 12 for annual rental and tax levied 25% on total annual rent.
DeleteAs far as procedure is concerned, the inspector incharge is right.
DeleteDear sir is there any consession for rented building used for office use. Email , sakhry@yahoo.com
ReplyDeleteThere is no such concession. The tax rate is 50% higher than the residential properties for the properties used as offices. However, the rate for properties used as offices is 50% less than the rates for commercial properties.
DeleteRespected sir! last time i asked about the plot of 1 kanal from my own name,kindly tell me the plot is also non taxable from my husband's name or not? it is a residential plot.
ReplyDeleteThe plot will still be non taxable.
DeleteHowever, note that the answer is strictly applicable to the extent of a vacant plot and property tax; there may be other taxes pertaining to the purchase transaction and plot being your personal asset.
Kindly calculate the property tax of a commercial building of four stories for year 2012. Size 22×28 rate for ofgice at their is 4.5. Email: sakhry@yahoo.com
ReplyDeleteThe information is not sufficient to calculate your tax liability.
Deletedear Mr. Shakeeel,
DeleteThanks for the kind iformation can u please guide how to check Category (Commercial) assigned to locality,
Category (Residential) assigned to locality
maqadeertrading@gmail.com
Thank you for your query.
DeleteCheck Website of E&T Department or consult with the E& T office of your district.
I have a 5492 sq ft double storey house in Valancia Town, Lahore. The land area is 1 Kanal. Kindly guide me in assessing the property tax. I am the owner and the house is in self-use.
ReplyDeleteKashif
Thank you for your question.
DeleteThe owner-occupied house are not taxed on higher side in general. You do not have any need to worry about tax of a one Kanal Self-occupied house.
The exact calculation of tax is possible only after obtaining specific information from the concerned Excise and Taxation office e.g. rates of valuation in the locality, situation of property, etc.
A.O.A sir we have a house in town ship, it is of 40 marla, and approx 6000 sq.feet covered, fall in category B, it being rented and they are using the house as a school, and there are two rooms at the second floor, so please tell us
ReplyDelete1. the total tax of our house .
2. on which base they calculate the annual rent assesment .
3. whats the formula for the tax calculation.
i will be very thank full to you , thats my email id in case you need it:
subhanjamil92@yahoo.com
Thank you for your question.
Delete1- The calculation of tax is a particular matter and it needs a full knowledge of the property being taxed. Contact me through email for this purpose.
2- The basis of calculating the assessment is Average Monthly Rent of the locality. The Average Monthly Rent is also known as Monthly Notional Rent.
3- It is given at http://taxingtheproperty.blogspot.com/2013/10/what-are-property-tax-rates-in-punjab.html
Hi sir,
ReplyDeleteI am purchasing new house of 6 marla (worth of 40 lak) in rawalpindi.. I need giudline of tax for transferring house... they are asking capital value tax and gain tax from seller..
What is policy for that tax collection how many percent government of punjab charge, of capital value tax and gain tax on property value.
From Where I can get authentic information of capital value tax and gain tax..is this tax applicable on property sale purchase or not?.thanx
Thank you for your question.
DeleteCapital Gain Tax is also applicable, w.e.f. 01.07.2013. Total charges inclusive of all taxes in cases of such property transfers range 5-6% subject to various conditions.
In general. the seller is responsible for a lawful "ownership" in his name and the buyer bear the charges for getting the property transferred from the name of the seller to the name of the buyer. However, there may be some contractual arrangements between the buyer and the seller.
From where have you derived this formula sir?
ReplyDeleteThank you for the question.
DeleteRefer to section 3 and 5 A of the Punjab Urban Immovable Property Tax Act 1958 and rules framed thereunder.
Hi,
ReplyDeleteI have 10 marla house in Lahore. I have been given a tax assesment based on the following.
1. 2250 x 3 = 6750
2. 250 x 3 = 750
3. 6750 +750 = 7500
4. Annual rent . 7500 x 12 = 90000
10% maintenance exemption = 9000
Remaining = 90000-9000 = 81000
Tax = 25 % 81000 = 20250
This is based on 25% tax from Jul-2013 to Jun 2014 Annual rent. I have just read at this blog that the tax rate is 10 % after Jan-2014. So how will it affect the tax for my house.
Hi,
DeleteThank you for your question.
Your calculation of Tax from GARV is correct; the rate of 10% is for properties valued using the new valuation table still in process. It seems the department has assessed your property under the existing valuation rates.
AoA Sir,
ReplyDeleteI live in Rawalpindi cantonment Area, Please confirm me the 5 Marla Resident Property Tax, Is this except or have any tax on 5 Marla.
Thanks
W Salam,
DeleteThank you for your question.
Five Marla Properties in residential use and generally exempted all over the Punjab with certain exceptions. Please See Five Marla Exemption post at
http://taxingtheproperty.blogspot.com/2013/11/five-marla-tax-exemption.html
In Cantonement Rawalpind, the Punjab Urban Immovable Property Tax is not application for assessment and collection of Property; you should consult bye-laws of the Cantonment Board Rawalpindi.
Assalam-O-Alikum Sir,
ReplyDeleteI have a property of 36 marlas in punjab small industries estate faisalabad
its category 'A' total measuring 9949 sq.ft
the construction area is of 8 marlas, the rest of the area is open
construction area includes a big hall and a small room for office
property is on rent and being used for keeping the stock of precticides
you may consider it godon or warhouse
im getting rent of 25000 per month
plz tell me what should be my property tax? just give me an idea.
my second question is
i recieved a property tax notice of 6000 approx as (self) on 15 january 2014
i submitted the amount
now got another notice of tax of 38000 approx (rented) on 15 feburary 2014
the details of the property are given above
plz help me. what should I do in this condition
exice officers r asking for bribe to settle the issue
plz do reply as soon as possible
It seems you are not aware of the category of assessment, in category A your property tax should be 96150. The notice is of lesser amount. Will you please contact me via email for a detailed calculation? My email is shaqeil@gmail.com
DeleteSir thank you so much for your kind reply
DeleteIm really in tensed situation
I phoned you just now at 8:15am but got no response
when should I call you, I mean when will you be free
plz leave a txt so that i can get back to you
regards,
You may contact me after Maghrib Prayer as dicussed on phone.
DeleteA.O.A sir i have property in a main bazar ferozpur road lahore the shope area lenth=12'-6", Width 10'-6". 85 sq/ft and on rental base 16,000 Per month..just ground floor and off the road..which formula i can used to get actual tax amount. the property owner was my father (late) two years before means he was passed away in January 2012 while mother is paralyzed since that day. kindly help me in this regards.
ReplyDeleteW Salam,
DeleteNote the following points:
1 - Your tax is not based on actual rent of Rs 16000 p.m;
2 - Your widow/ disabled mother has right to exemption up to her share in property and subject to a max of Rs 12150;
3 - You need to apply for change of ownership before getting the exemption stated at sr. No 2;
4 - I need category of your locality to tell you your tax liability.
Following link/ post is useful for you:
http://taxingtheproperty.blogspot.com/2014/02/property-tax-calculator.html
Sir how would I get to know about my current status of tax account regarding property? should I aply for clearance certificate? if yes then whats the procedure?
ReplyDeleteYou should apply for "clearance certificate". For the procedure, wait for upcoming posts.
DeleteThank you for the query.
You should apply for "clearance certificate". For the procedure, wait for upcoming posts.
ReplyDeleteThank you for the query.
Sir,
ReplyDeleteAOA,
One of my father's friend has some property in Mandi Bahaudin. He has made shops on the ground floor and rented them and on the first floor he lives with his family. He has been sent a tax assessment by the concerned authorities. A lawyer has told him that if you say that the business is shared then tax can be minimized
He asked me. First of all i fail to realize that if business is shared then what does it has to do with the property. Secondly if one says that the property is shared( eg house is ours but shops are of the other owners) then will the liability be minimized? kindly advice me about the above stated matter and another scenario that if whole of the property is shared.
W Salam.
DeleteThere is a simple relationship between "business partnership" and "Property Tax". A property is considered "self-occupied" if you are using it for your own business or business in partnership; therefore, the valuation of property is made at lower rates.
But it is difficult to prove a partnership which does not exist: You will have to produce registered "Partnership Deed". A registered partnership deed will make you real partner in business - will your tenant allow you to be a partner in his or her wealth?
Similarly, sharing in property means you are making the partner an owner of the property: I do not expect you will make some one owner of your property to avoid property tax. Note that the department will rely on "Registered Ownership Deeds" ONLY.
Any other query?
AOA
ReplyDeletesir my father has been died we live in 5 marla house in gujranwala semi commercial area recently we reconstruct our house with 7 shops.. monthly rent of one shop is Rs.1500 please tell me either we are liable to pay tax or exempted....are any exemption to be claimable from my mother
W Salam.
DeleteYou are to pay the tax; Property Tax on commercial properties is not exempted under five-marla exemptions.
Your widow mother is entitled to Property Tax Exemption up to Rs 12150; however, the exemption is limited by her share in property. In your case it will only be 1/8th of the Property.
Any other query?
Asslam O Alikum Very Nice website, very informative and shakeel sb my personal commendations for you for the education you are spreading,
ReplyDeleteI Have two Questions brother:
Question 1: Can you please tell me how in the following case they reached to Gross Annual Rental Value of 5650?
Content of Form PT1
Rating Area - Multan
Rating Area Zone - Multan
Year - 2012-2014
1. Serial Number: 434
2. Name or numb of sub division, mohalla..... : Aqab Humayun road - IX
3. Designation of Property by name, number, type of building etc : 2417 - Godown
4. Name, Percentage, caste and residence of owner: Muhammad SHafi Tanneries 51 GT rd Lhr
5. Name, Percentage, caste and residence of Occupier: Self - 1shd 25x20 - 1shd 25x35
6. Total Area of the site or land: 686 SY
7. Size of the building according to the plinth area: 1375
8. Size of the building on the site according to the plinth: 1
9. Number of storeys/room : 2 shd
10. Present condition of the building: AV E
11. Site Rent if any payable by owner of the building: -
12. In Case of land not occupied by building: O/R
13. GARV Assessed : 5650
Question 2 - Last time the property tax that was paid in September 2013 was 20% on Annual value proposed. Like this
13. GARV Assessed : 5650
14. Deduction Allowance
clause (a) 565 (10% of 5650 for rebate for repairs)
clause (b) -
clause (c) -
15. Annual Value proposed - 5085
16. AVFIPOAO: -
17. AVFIPOAA: -
Property Tax = 5085 x 20% = 1017
I heard that from 1st Jan 2014 the rate for property tax will be 10% (instead of 20%), So should the property Tax be Rs 509 (5085 x 10%) this time?
I can read few remarks on Form PT-1
Remarks : (hard to read)
Cal no. 4 Ammended alt..
vide a.. order at 10.02.2014
-------------------------------- ...
Cal no 4 Ammended al...
vide aas order at 17-3-2014
Your early reply will be highly appreciated..
Fahad Rajput
(ACCA)
W Salam,
DeleteThank you for your questions; answers follow:
1 - I need category of your locality to calculate Annual Rental Value of your property; and
2 - The rate of tax has not been reduced. Please see: http://taxingtheproperty.blogspot.com/2014/02/punjab-pakistan-old-rates-of-propperty.html
The effective rate of tax is 20% and 25% on Annual Rental Value.
Thanks for your respose, how can i get info about the category of this property? who can tell me?
DeleteThe Excise and Taxation Office of your district. You may contact: The Excise and Taxation Officer, or the Excise and Taxation Inspector of your circle.
Deletei think its E
DeleteUse the total area and covered area given in Col No 6 and 7 of the PT1 with the category and the Property Tax Calculator Online at: http://taxingtheproperty.blogspot.com/2014/03/property-tax-calculator-punjab-pakistan.html
DeleteIf the problem in calculation persists, visit my post on "How to use Property Tax Calculator" at this blog.
Any other query?
This comment has been removed by the author.
ReplyDeleteDear Sir,
ReplyDeleteWhat are the property tax rates in Islamabad, Pakistan, for 2012/2013?
If my property which is located in Islamabad has rent of Rs 45,000 per month, then how can we calculate the tax that should be deducted from this amount?
Dear Ali Raza,
ReplyDeleteProperty Tax is not deducted at source; you may be interested in knowing Income Tax Deduction from the rent received by you. Visit the link: http://taxingtheproperty.blogspot.com/2014/01/tax-of-rental-income-from-property-in.html
Any other query?
Salam Sir,
ReplyDeleteI have got a room of a house on rent and placed a shutter outside of that room. Now, it somewhat looks like a shop. The owner is asking me to pay tax because his building has been commercial(what he says), So please tell is that tax applicable on me? Am I liable to pay him tax; because I am not owner of the property?
W Salam,
DeleteIf the use of the room is commercial e.g. for keeping stock, doing business, etc, then it will be a commercial property and will be valued at commercial rates for the purpose of property tax.
Tax is payable by the owner. It is, however, to be noted with care that the owner may reject the use of his property for commercial purposes because he has right on use of the property i.e. he is the owner.
Tax is applicable if the valuation exceed Rs 1200 per year; the value is likely to increase since it is a rented property.
You are not to pay tax in the first instance. However, the assistant collector may force you to pay the tax and deduct it from the rent. Primarily, it is not your responsibility to pay the tax of the owner.
The property may attract "commercialization fee' by the local government and development authorities who have developed the property for residential use.
Any other query?
Hello sir,
ReplyDeleteWhat is the Annual property tax on a single story 10 Marla house located in Park View near thokar niaz baig lahore?
Its self owned and I reside there.
Thanks
Thank you for your question.
DeleteWhat is total covered area of your house?
What is the category of valuation?
You can get the category of valuation from the Excise and Taxation Office of your area.
If you want to calculate property tax yourself, use two posts here:
Property Tax Calculator?
How to use Property Tax Calculator?
sir my house in adaila road rawalpindi and coverd area 5 marla how to calculate my property tax and tell me also which person is liable to pay property tax in pakistan 2014 onward hope your complete and satisfactory anwer sir to complete procedure regarding propert taxes in pakistan thank for
ReplyDeleteThe tax is not on persons; it is on property. The person (owner) is to pay the tax. However, certain persons, if owners, have exemption from payment of property tax e.g. a widow owner.
DeleteI do not understand what is satisfactory for you? If it means calculation of your tax liability then it is only possible after having full details of the property and a look at it. That is why field staff visits properties.
I you want to calculate property tax of your property, use posts related to "Property Tax Calculator"
Honourable Shakeel Sahib
ReplyDeleteI need to meet you, if possible.
Regards
Tipu Sultan
In which city do you live?
DeleteI live in lahore.I am running a private hospital.I am paying the property tax since around 20 years. Recentle they have reassessed the hospital and considered the consultants rooms as on rent. I have dedicated 6 rooms for consultants. The are on on call when needed and we pay them a percentage of the fee charged from the patient.These rooms mostly remain empty and have not been given on rent to the consultant doctors. I have gone in appeal to the director exise (Ashraf Gondal).The hearing date was 15.5.14 but the director was absent on the date. I will appear on the next date.The consultants and hospital share the fee charged from the patient. According to my information there is no example of any hospital paying the tax like this. I want to pay according to the law. Pls guide and help me. Regards.
DeleteWhat is the room rent per day for the patient rooms in hospital?
DeleteIn which city do you live?
ReplyDeleteAOA Dear Sir,
ReplyDeleteI m working in abroad and my family is settled in Pak Gujarat Shadman colony, house is consisted on 6 merle double story. Last week my family received Tax notice which is payable amount 11000 for six month and its last date was gone. .Many times Tax department personnel disturbed to my family ,so my family informed that we are not owner of this property we are living on rent.Kindly advise, May I entitle for paying tax or tax only payable those who are getting rent from tenant.
WS.
DeleteThank you for your question.
You are to pay the tax. If the tax is on the basis of rented property, apply for correction to the Excise and Taxation Officer of the District. However, you may have to pay the exisiting due before getting the upcoming tax corrected.
Thank You for Reply:. I learnt from someone, I am not entitled for paying property tax because I earned this amount from aboard and send this amount from money exchange into my Pak account. And you know Govt had waived the tax amount which is earned from abroad and its tax free income. Kindly let me clear my concern so that I may pay tax or not.
ReplyDeleteThanks.
What is learnt is correct for INCOME TAX, but you are trying to apply the Income Tax law on PROPERTY TAX. Note that Income tax is not Property Tax.
DeleteHello. This is great effort for informing about taxes in Pakistan. I also have a question. I have a shop in a market in Lahore which is on rent. I had paid property tax for that property but now some personnel from tax department came to me and told me that this property is on rent and you did not pay tax according to rented property. I could not apprehend what he is trying to say. Is there any difference in tax if property is in personal use versus property rented to someone?
ReplyDeleteHi,
DeleteThank you for your question. A rented commecial property has five time higher assessment than that of an owner occupied commercial property.
Thanks for quick reply. Please also tell me how to make assessment of commercial property tax? Do we have to multiply normal tax to 5 or is there anything else?
ReplyDeleteNo, the assessment or the valuation of the property is five times higher. The tax may vary due to varying rates for different slabs. Please refer to Property Tax Calculator on this blog to get your tax liability by inputting property details.
DeleteAny other query? feel free to ask.
Thank You
ReplyDeleteI booked a house of 5 marla from Imperial Homes Society at Barki Road Lahore and i have my residence in this house. last day some inspector come and through a cahllan form of property tax. please guide me should i applicable to pay the tax or not. thanks. Ayaz Ahmed
ReplyDeleteAOA
DeleteThank you for the query.
You are exempted to pay the tax if your house is of five marla. However, there may be some other reasons of not getting the exemption. For example, there may be tax pertaining to years when the exemption was not there. There may be other reasons too. You should get a copy of your PT-1 to understand how your property has been recorded in valuation list.
how to determine the categories of an area for calculating property tax without contacting the excise and taxation deptt. as this facility has been provided by the govt. to self assess the tax. there must be some procedure to determine the categories.
DeleteYou may consult the post here: how to use Property Tax Calculator
DeleteDear Shakeel shb,
ReplyDeleteMy house construction is recently completed in Feb 2014 and we have started living there since then. My question is if property tax will come this year i.e. 2014 or not? I am confused because I did not get any property tax document so far.
P.S. our house construction is not 100% completed according to map, we still have two room to be constructed.
You will pay the tax for the financial year 2014-15. This financial year will start from July 1 2014 and will end on June 30, 2015.
DeleteDear Shakeel Sahib
ReplyDeleteWe have Evacuee land measuring 6Kanal+. We have constructed shops and rented out these shops. Most of land is in our personal business use. Since the land is acquired never paid any property tax even excise deptt never claim for any tax. This year Excise Deptt served notice for property tax. Please let me know about tax calculation. What rate should apply for tax calculation for shops and land in personal use. The rent amount we are paying to ETPB is adjustable or not in tax amount?
Thank you for your questions.
DeleteThe basic question in your case is "Who is owner of the property?" The owner is to pay the tax. Send me scanned copy of the ownership documents to move further in the matter.
plz tell me any property story
ReplyDeleteWhat type of story you are asking for?
DeleteDear how much govt has increased property tax compare to last year
ReplyDeleteAsalam o Alikum
ReplyDeleteI have a house of 10 marla at main canal road harbanapura of B tax class having 2 portions; 1 is covering 10 marla of which 6 marla is on rent of 15000 per month and remaing 4 marla is for personal use. Upper portion covering 7marla is totally for personal use. Kindly let me now the property tax for this year.
Kindly also let me know the property tax if I take all for personal use.
One thing more is: below portion is constructed before 20 year and upper portion is before 12 year.
This comment has been removed by the author.
ReplyDeletei have house of 5 marlas double stories in westridge alabad rawalpindi..what is the tax for my house.we occupied own.
ReplyDeleteIf your property is in Punjab, you need to pay NO Property Tax on it.
DeleteIf your property is in Punjab, you need to pay NO Property Tax on it.
ReplyDeleteSir you are doing very good job. may Allah give you reward.
ReplyDeletemy question is
my orphan cousin age 13 own a house and given on rent.
total area 12 marla. covered area 7 marla (double sotry).
in 2012 tax inspector said that no tax until orphan is under 18.
but this year they send 22,000 rs tax.
is the rules changed?
if yes! what should be the exact tax? i heard that 12000/- is exempted and the amount above it will be payable is it true?
this house is in Ittifaq Town, Multan road, Lahore.
which category A,B,C or D etc will be applied to calculate (area rental value)?
thanks in advance.
You will have to get your tax exempted by applying for it. Tax is not exempted automatically unless we submit relevant informations with proofs.
DeleteGood Afternoon Mr. Shakeel Ahmad,
ReplyDeletei have a query regarding my property tax. today i received a property tax of 17000RS. I am residing in Lahore, Wapda Town and my property covers 5 marla. i reside in the upper portion of the house and rented out the lower portion for 9000rs per month for about 2 years. now the whole property is in my own use.
My query is, if this property tax payable to Punjab government i received today is legitimate?
do i have to pay property tax every year?
i will highly appreciate your prompt reply.
Regards,
Waqar.
It seems unjustified; your property should fall in five marla exemption. Can you send me a scanned copy of the notice you have received?
Deletewhere should i send the scanned image of notice? can i have your email?
Deletemma.waqar@gmail.com is my email address.
Deletei just sent you the scanned images of the notice i received on your email today. please check sir. thank you.
DeleteIf your house if 5 marla, you do not need to pay tax even if your house is let out. Contact your Excise and Taxation Office with a proof that your property is a resdential property with area of five marlas. You may need to apply for correction of area if it stands recorded as more than five marlas in tax records.
Deletesir my father is ex-army man.
ReplyDeletemy and my brother,s family live with our father
our house is 7 marala one story .
how much tex we will pay
i live in sialkot .our house is away from main road
thanks
there is no consession for retired army man?
ans please
ReplyDeletewhat is the rule if i not pay tex?
ReplyDeleteDear Sir,
ReplyDeleteOurs is an office in Lahore. So far we were being charged at 1.5 times of the tax for residential property. But now the taxation office has told that this clause has been withdrawn by the government and the office shall be treated and taxed as commercial property.
I just want to confirm whether this is true or the staff is bluffing us.
Secondly what the new rates of property tax, flat 5% for all properties or different for different types.
Best regards
Muaaz
Rates for office are 1.5 times the rates for residential properties. The notification stands revised. The tax on properties is 5% of the value calculated using new valuation rates.
DeleteDear sir,
DeleteThanks for your nice reply. I understand that
1. The rule for taxing office @ 1.5 times the residence is still in tact. Correct ?
2. With new valuation tables, the rate of tax shall be 5% of calculated annual rent value. For all types of properties ?
3. With new valuation tables, the offices shall be taxed @ 1.5 times the tax of residence property.?
Best regards
Muaaz
sir my father is ex-army man.
ReplyDeletemy and my brother,s family live with our father
our house is 7 marala one story .
how much tex we will pay
i live in sialkot .our house is away from main road
thanks
there is no consession for retired army man?
See reply below.
Deleteansssssssss plzzzzzzzzzzz
ReplyDeleteYou will have to pay no tax. However, you will receive tax notice each year because department will need to confirm that your father still own the house. It means you will need to apply for exemption each year.
DeleteNice blog also browse Real State
ReplyDeletedear sir aoa.i have a 10 marla house in my name in askari 10 lahore cantt.the house is neither leased nor registerd on my name .what will be its status as for as tax is concerned.
ReplyDeleteIt will be taxed as a owner occupied house and the tax liability will be very small e.g. a few hundreds.
Deleteis there any tax on residential plot for an army officer. he is otherwise paying tax on his salary.
ReplyDeleteTax on salary and tax on property are two different taxes going to two different governments. Your local government collects Property Tax and uses it for providing you sanitation, street lighting etc. Your Federal Government collects Income Tax on your salary and use it in matters like defense of our country.
DeleteGreat work by Mr. Shakeel, stay blessed.
ReplyDeleteAgha Sultan
sir is there any way to get the NTN/FTN/PNTN of DHA lahore? i tried but i could not get it. your help/guidance will be highly appreciated. please try to respond fast. thanks
ReplyDeleteNTN and other tax numbers have nothing to do with DHA. You may get them from respective tax offices e.g. NTNT from Income Tax Department. DHA uses them in processing application for registrations with them.
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sir we are buying a house which is not complete in Wah Cantt , Teh Taxila on a 5&half Marla for residential purpose .is there a tax on a residential property and how much .and when do we have to pay. thanks
ReplyDeleteYou will have to pay a few hundreds as property tax because your house measures more than five marlas. However, a range of exemptions are usually available with military men and others in cantonments laws; consider visiting the cantonment office before deciding to pay the tax.
Deletesir what is the annual value if the house is for 24 lakh. and the tax rate in wah cantt because we are told that we have to pay over one lakh
DeleteThe annual value is not something associated with the price of a property. The Cantonment Board, or the Excise and Taxation Department assesses this using valuation tables notified from time to time, generally after a lapse of 3-5 years.
DeleteA self occupied residential house cannot have that much tax; you should consult with the tax office to get the basis of the tax pointed out by the respective officer.
1.sir if i give a property on rent at 5th december 2014 then i will start to pay tax on 2014-15 or 2015-16?
ReplyDelete2. if i give a commercial plot on rent which is not constructed will i pay tax on that plot?
Dear Yahya,
DeleteThank you for your question. Here are the answers:
1 - You will pay property tax from January 1, 2014. If you have already paid the tax, you will pay the difference of the tax arising out of the change. Your tax for 2013-14 will have two six monthly installments: one for rented period and an other for non-rented period of your property.
2 - Yes.
AOA
ReplyDeleteDear shakeel Sb,
What is the annual property tax for 19 Marla residential self occupied home?
1st Floor Covered Area = 3000Sq Ft
2nd Floor Covered Area = 2500 Sq Ft
Kindly Guide me about the actual formula.
With Best Regards
M Waseem Anwar
19 = 574.75 square yards
DeleteTotal covered area is 3000 Sq Ft + 2500 Sq Ft = 5500 Sq Ft
Please see Rating area to find GARV (Gross Annual Rental Value)
Sample Rating area of category Q. Different areas are letter wise categorized
For Example Rate for Category Q within which your area falls is Rs. 2.5 Per Square Feet and Rs. 2.5 per Square Yard Then Calculation will be as follows
Plot Area is rated Per Sq Yard which is 574.75
And as Per Sq Yard Value is 2.5
Total Monthly Plot area Rate is Rs. 574.75 x 2.5 = Rs.1436.875
And Covered area is rated Per Sq which is 5172.75 Sq Ft for 19 marla and For your building it is 5500 Sq Ft
Total Monthly Covered area rate is Rs. 5500 Sq Ft x 2.5 = Rs.13750
Total monthly Covered area + Total Plot area Rate = Rs.1436.875 + Rs.13750
= Rs. 15186.875
Garv = Total monthly Covered area + Total Plot area Rate x 12
= Rs. 15186.875 x 12
= Rs.182242.5
Arv = Garv - 10% of Garv i.e 18224.25 = Rs.182242.5 - 18224.25 = 164018.25
Property Tax is if 20 % of Arv(Annual Rental value)
20 % of Arv of Rs. 164018.25(Annual Rental value) is Rs.32803.65.
Property Tax for Category Q(which in your is not known) for 19 marla with covered area of 3000 Sq Ft + 2500 Sq Ft = 5500 Sq Ft is Rs. 32803.65.
Please use online tax calculator.
DeleteThis comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteExemption in THE URBAN IMMOVABLE PROPERTY TAX ACT, 1958
ReplyDeleteS.4(1)(c) Residential buildings, the area whereof does not exceed five Marlas(151.25 Sq Yards) and the
building is occupied by the owner himself:
Provided that the owner does not own any other residential building at the
same rating area for which the owner shall submit an affidavit to this effect:
What are you intending to ask? It seems you do not have a framed comment or question?
DeleteDear Sir,
ReplyDeleteIf i want to register a plot of 8 Marla 20 fit located in Al Badar Garden near Kala Shakaku interchange shahidara lahore under my name; how much will it cost me for the government fees and stamp duty?
regards,
Samiullah
Dear Sir,
ReplyDeleteIf i want to register a plot of 8 Marla 20 fit located in Al Badar Garden near Kala Shakaku interchange shahidara lahore under my name; how much will it cost me for the government fees and stamp duty?
regards,
Samiullah
The information is not sufficient to calculate what you need. Transfer Fee is calculated on the transfer price, the sale or purchase price of a property.
DeleteSir the price is 525000 rupees and its 8 Marla 20 feet, Located in Al Badar Garden Shahdara Near Kalashakaku Interchange Lahore,
Delete5 marla 15 feet house purchase kindly calculate tax all area is covered
ReplyDeletePlease use online tax calculator for it.
Deleteplease tell transfer tax , hiba(gift) worth in 1992,Rs 50,000, gift from mamo to my mother , i applied for NEW CB# of house , house is my mother name , contruction of house in 2004
ReplyDeleteupdated property rates of Lahore represented by Lahore Real Estate.
ReplyDeleteExcellent your Blog !I like your post, thanks for this info.Property In Noida Extension
ReplyDeleteWant to know property tax rules for commercial building at Cantt lahore
ReplyDelete
ReplyDeletevery Informative post
Houses for Sale in Lahore
DHA Lahore
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Your tips and techniques are very essential and necessary for Income Tax Calculator
ReplyDelete. Anyway, thanks and keep on posting!
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hello sir we have a personal house of 12 marlahs in which we are personally lived can u tell me about that how much income tax will be applied on it thank u.
ReplyDeletei think any one who is a govt employee and has only 1 house for his own residence is exempted from property tax.However you can contact any lawyer for this purpose. if you live in cantonment board area,then they will issue you a form which you has to deposit back after filling it up.
ReplyDeleteThanks for sharing such a nice knowledge with us. A must read blog. https://www.lawsuitlegal.com
ReplyDeleteHon'ble Sir ,
ReplyDeleteI am an exclusive owner of 1st floor Efu house jail road Lahore.
I an executing a rent agreement for 60 months (Nov. 2015-Oct.2020).
It is 10,888 square feet area.
Rent per month is Rs. 994,837/-
Rent payment: annually in advance.
Rent Escalation is 10 % every year.
Rent free period : Two months (initial rent payment).
I consulted an Advocate but he confused me a lot therefore I am requesting your truthful advice.
Please provide me the following details:-
What ll be registration fee for the said agreement , at registrar office ? Kindly specify stamp duty amounts , registration fee , all the taxes individually.
How much govt. Charges I 'll have to pay rent registrar Lahore to register said rent agreement?
Thankful to you.
Hajji Atef Sattar
In present, real estate market is performing well in all over India, and to get the benefit from that every property owner have to pay the certain money in the form of property tax in all over India as per the terms and condition of state or central government, however; each state is taking different amount of property tax. And on the same time it’s helping the government to regulate the real estate sector of country.
ReplyDeleteshopsandhomes.com
Dear Mr. Shakeel Sb AoA
ReplyDeleteMy father (a retired Govt army officer) has recently received a letter from Income Tax Authority asking for payment of Property Tax Rs.720,000/- (approx). In this regard, while going through the internet regarding Punjab Property Tax Laws, among others i have found your blog regarding property taxes, which i found very informative.
Keeping in view of your expertise in the matter, i would like your opinion & advise w.r.t aforementioned issue. In this regard, following is brief of fact/information which you may find helpful regarding the subject matter:
1. My father is a retired army officer, who was allotted a 1 kanal house (with covered area of approx 5000 Sq Ft) in Askari X Lahore by Army Housing Directorate in 2008-09.
2. Since then house has been on & off, either on Rent or just lying vacant/unoccupied.
3. My father has no other property in his name anywhere in Pakistan & living with me.
Your professional with regard to following opinion shall be highly appreciated:
1. Any relaxation admissible under prevalent law with regard to the payment of said Property Tax?
2. How the property tax has been calculated by the tax authorities ?
I am really appreciating very much by seeing your interesting posts.wwww.irsmedic.com
ReplyDeleteASSLAM-U-ALIKUM
ReplyDeleteSIR,what is the property tax on a rental shop in gallah mandi mian channu,if monthly rent is 17000 rupees.
sir my shop is own and we recently buying it fsd but last two years we received tax forum ..so it is compulsory to collect
ReplyDeleteIt's really a nice article,
ReplyDeletepersonal tax returns
Thanks for this helpful and useful informative post,
ReplyDeleteMoney Transfer Service
I have a one canal plot on my name purchased last year in secotr N, DHA 2, Islamabad. The area is still undeveloped. I paid the Withholding tax on purchase. Do I need to pay any tax per year on this empty plot.
ReplyDeleteIs there any yearly tax to be paid on empty plot. I purchased a one canal plot last year in may name on DHA, phase 2, islamabad in an undeveloped sector. I paid withholding tax on purchase. Do I need to pay any further on yearly basis?
ReplyDeleteAssalam o Alaikum sir umeed hy ap khairiyat sy hon gy sir mera ye sawal hy k maine 1 ghar lena hy jo k 4 marla pr hy neechy 2 room hain or 1 room ko malik makan ny shop banaye hue hy or upper 2 room hain uncomplete hain total 4 marla pr hy to sir is pr kitna tax dena ho ga or sir registry krwany k sath sath iska m intiqal nama bhi krwana chahta hn to sir plz iski fees kiya hoti hy kiua tareeqa kaaar hy makan ki registry k liye 1 lakh pr kitny paisy deyy ya jo bhi tatika hy plz guideline dy dyein apki mehrbani ho gi ye makan multan m hy or m bhi multan ka he rehaiyshi hn mera email id ye hy
ReplyDeletemuhammadsadiq71@gmail.com
apky jawab ka intizar rahy ga
wasalam
Fe Amanillah
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ReplyDeletei want to ask that how much tax i have to pay for 7 marla plot worth 43 lacs?
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