Property Tax Exemption: Five Marlas
Residential
houses of five marlas or less not falling in Category A are exempt from
property tax. A five-marla house will attract payment of property tax only if
it has a Gross Annual Rental Value of Rs 5,000 or more and is situated in a
locality where Category A has been applied. Category A is the category of the
valuation table having a rate of Rs 15 per square foot per month, which refers
to the monthly rental payment a house is capable of fetching.
Is the five-marla exemption only for owner-occupied houses?
No,
it is for both rented and owner-occupied houses. You do not have to pay
property tax on a residential house measuring up to five marlas in size even if
you have let it out.
Is this exemption available for a 10-marla house co-owned by two persons?
No.
Property tax is on property, not on the owners of the property; therefore, it
is the property which determines the property tax. Two persons owning a
10-marla house are co-owners of a house measuring more than five marlas, and
thus are not entitled to the exemption from payment of property tax.
