Tuesday, November 12, 2013

Five Marla Tax Exemption: Punjab Pakistan

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.

45 comments:

  1. Thank you for your post. This is excellent information. It is amazing and wonderful to visit your site. It really gives me an insight on this topic. You can find more information about Property Tax Records here.

    ReplyDelete
  2. Replies
    1. Lovely site..My father and I were retired Government officers. I have one brother and 5 sistors. Im living in my father's inherited house of about 8 marlas which has been locked by me for the last 25 years because I was and am in abroad. Recently I received a house tax notice of Rs.2 lac 40 thousands with 20 years arrears (calculation is not correct). For transfer of this house on my name, bro and sistors are agreed verbally but not practically. Should I deposit the tax or file a suit for next of kin so that it could be transferred to my name.Thanks

      Delete
  3. hi sir
    i 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.

    ReplyDelete
  4. Thank you for your questions.

    Since, your house has an area below 5 Marlas, you need to pay nothing.

    However, note that:

    1- The status of being in armed forces has no effect on your property tax liability;
    2- The status of your father being a retired government servant make him eligible for exemption from payment of property tax in respect of one residential house up to 1 Kanal occupied by him;
    3- Living of more than one family in a house has no effect on property tax; and
    4- The status of your mother being deceased owner require you to apply for entry of her legal heirs in the tax records.

    In addition, you may have to pay property tax arrears pertaining to years prior to 01.07.2003.

    This reply is subject of properties liable to pay tax under the Urban Immovable Property Tax Act 1958. The laws of cantonment boards allow exemption to in-service employee of armed forces.

    ReplyDelete
  5. hi
    does a 5 marla house situated in Islamia paark poonch road fall under catagory A, will it b tax able?

    ReplyDelete
    Replies
    1. Thank you for the question.

      The information can only be obtained from the Excise and Taxation office of your district.

      Delete
  6. This comment has been removed by the author.

    ReplyDelete
  7. Dear Riffat Sb,

    The question was interesting; why did you delete it?

    ReplyDelete
    Replies
    1. Sir, what i have 6 marla plot in dha rahber? do i need to pay tax?

      Delete
  8. aoa
    sir i want to buy a house of 5 marla in wapda town, as we are buying is we have to pay tax ????
    2nd is govt employee exempted from this tax ???

    ReplyDelete
    Replies
    1. W Salam.

      1 - If you are writing about a five marla house in WAPDA Town Multan, it is exempted from payment of Property Tax;

      2 - You need to check un-exempted arrears of tax (if any) from the Excise and Taxation Office;

      3 - An in-service government employee is not exempted from payment of Property Tax;

      4 - It is a good practice to check following things before buying a house:

      (a) Existence of liabilities against the house being bought e.g. Electricity Bill, Gas Bills, WASA Bills, Charges of Society/Company Managing the concerned housing, scheme, Bank chanrges, etc

      (b) Existance of valid Title in the name of the seller.

      Delete
  9. is there any property tax payable on a house consisting on 20 Marla, owned by 4 brothers, @ 5 marla each,

    ReplyDelete
    Replies
    1. Yes; property tax will be payable on 20 Marlas owned by four brothers. It will be exempt-able if the property is physically divided into four units of five marla each.

      Delete
  10. Dear Sir,
    Please provide your email ID

    ReplyDelete
  11. Wow, excellent data regarding this issue. You might want to let me know how long will it take? Because I like to write the thesis or may be it would be nice to detect the thesis writing service. Thank you very much.

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    ReplyDelete
  12. Dear Shakeel Sb,

    I have retired from University of Engineering And Technology Lahore (UET). I tried to apply for tax for my 1 Kanal exemption but the excise and taxation officer told me that there is no exemption for UET. I tried my best to convince him with the fact that UET is under Punjab Government and we recieve pension from Punjab Government etc but he insisted and returned my application. Your guidance is required and will be highly appreciated.

    Thanks in advance

    Dilshaad Cheema

    ReplyDelete
  13. Kindly advise me on: I have a house of 03 (three) Marla in Category A residential area. do I have to pay property Tax
    Regards

    ReplyDelete
  14. I have a house of 1.5 Marla in Category A residential area. do I have to pay property Tax

    ReplyDelete
  15. I have a 5 Marla double story house in Dhoke Kashmirian, Rawalpindi do I have to pay property tax.

    ReplyDelete
  16. Living of more than 1 family in a home has no effect on property tax.
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    ReplyDelete
  17. LETTERS TO THE EDITOR
    -------------------------------------
    SUBJECT, THE BAD POLICY ADOPTED BY DEPARTMENT OFEXCISE& TAXATION OF SERVING UNJUSTIFIED & EXORBITANT CHALLAN NOTICES OF THE PROPERTY TAX TO OWNERS OF FIVE MARLAS HOUSES ( ALREADY DECLARED EXEMPTED)
    ==================================================
    I want to draw the kind attention of Chief Minister of Punjab THROUGH YOUR ESTEEM NEWSPAPER about Unjustified and wrong Challan Notices of exorbitant amount of property taxes served to the residents of FIVE MARLAS Plot owners RAWALPINDI by the Department of the Excise & Taxation Rawalpindi who are residing in their Five Marla Houses while Government of Punjab have already declared and granted exemption to all such property owners (Who are living in Five Marlas Houses) in paying any property tax
    In these CHALLAN NOTICES recently served to the property owners through distributor peon/qasid, there is not found any signature and office stamp of the concerned responsible officer of the department of the Excise & Taxation Rawalpindi..

    ReplyDelete
    Replies
    1. Sir thank you for putting this out in open. I would like to know what can be done to avoid paying these challans since our house is exemped from tax under category A?

      Delete
    2. Sir thank you for putting this out in open. I would like to know what can be done to avoid paying these challans since our house is exemped from tax under category A?

      Delete
  18. LETTERS TO THE EDITOR
    -------------------------------------
    SUBJECT, THE BAD POLICY ADOPTED BY DEPARTMENT OFEXCISE& TAXATION OF SERVING UNJUSTIFIED & EXORBITANT CHALLAN NOTICES OF THE PROPERTY TAX TO OWNERS OF FIVE MARLAS HOUSES ( ALREADY DECLARED EXEMPTED)
    ==================================================
    I want to draw the kind attention of Chief Minister of Punjab THROUGH YOUR ESTEEM NEWSPAPER about Unjustified and wrong Challan Notices of exorbitant amount of property taxes served to the residents of FIVE MARLAS Plot owners RAWALPINDI by the Department of the Excise & Taxation Rawalpindi who are residing in their Five Marla Houses while Government of Punjab have already declared and granted exemption to all such property owners (Who are living in Five Marlas Houses) in paying any property tax
    In these CHALLAN NOTICES recently served to the property owners through distributor peon/qasid, there is not found any signature and office stamp of the concerned responsible officer of the department of the Excise & Taxation Rawalpindi..

    ReplyDelete
  19. What can i do to avoid paying these challans that RAJA GHAZANFAR ALI mentioned as my house falls under category A?

    ReplyDelete
  20. What can i do to avoid paying these challans that RAJA GHAZANFAR ALI mentioned as my house falls under category A?

    ReplyDelete
  21. (TEXT) PROPERTY TAX WITHOUT SURVEY
    Inbox
    x

    RAJA GHAZANFAR ALI KHAN ADOWALIYA
    Oct 27 (3 days ago)

    to me
    LETTERS TO THE EDITOR
    DAILY DAWN
    =================
    SUBJECT,
    UNJUSTIFIED PROPERTY TAX ON FIVE MARLA HOUSES
    I Want to draw the kind attention of Prime Minister of Pakistan that the corrupted & inefficient staff of Department of EXCISE & TAXATION
    Rawalpindi have not carried out the correct survey of the houses of Rawalpindi in honestly and properly way at site and now most Nos of owners of the houses of Five Marlas are now receiving wrong , unjustified and illegal challan Notices of Property Taxes by showing the bogus and incorrect wrong areas of the houses in the Challan Notices of the owners of the Five Marlas houses while the government of Punjab have already granted exemption to the owners of Five Marlas Houses. Such bad and cruel types activities of upsetting the owners of Five Marlas houses by the Department of Excise & Taxation Rawalpindi can be caused the death of any Heart Patient owner of five marla houses by Heart Failure .

    Hence in views of the above mentioned facts , I will request to Prime Minister of Pakistan to kindly take drastic action against officers/staff at fault who have not made the actual and correct survey of the houses of the Rawalpindi
    I hope that Prime minister of Pakistan will surely set right most worst working system of the Department of Excise & Taxation Rawalpindi Division.
    …………………………………………………………………………………………………………
    COMMENTED BY,
    RAJA GHAZANFAR ALI KHAN ADOWALIYA
    MA (Political Science)
    PRESS ESSAY WRITER
    House-5, Street No-10, IQBAL TOWN, Rawalpindi-46300
    Date, 27-10-2016
    ……………………………………………………………………………………………

    ReplyDelete
  22. slam , Sir ager aik he khaevat main sath sath aik he person ne total 10 marla ka plot purchase kere but 5 marla saprate + 5 marla saprate apne he name pe saprate fard se registries kerwaee ho to kia dono plots per tax exemption hai?

    ReplyDelete
  23. Aoa sir hum ne 4mrla house march 2015 mn khreda tha. Ab dec 2016 mn bchne lge hn. Kia tax pay krna pre ga bechte hue b?

    ReplyDelete
  24. aoa sir humara 5 marla house. kia 5 marla tax pay koi new rule to nei aya?

    ReplyDelete
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  26. sir i hv sent u my email regarding property tax, i hope u will give me quite well details about property tax.

    ReplyDelete
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  28. This comment has been removed by the author.

    ReplyDelete
  29. sir which Lahore areas are categorized in Category A of the property tax and what is the tax ratio in each area and what will be the effect of this tax ratio on Real estate Lahore market

    ReplyDelete
  30. Sir I live in wah cantt, in 4 marla house.
    rule of tax in cantoment bord is differ with pujab or not,
    Kindly guide me.
    JazakAllah

    ReplyDelete
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  32. Sir Whata's the rule for 5 Marla house in DHA Islamabad ?

    ReplyDelete
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