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...
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Dear Shakeel
ReplyDeleteAre you sure this change is from 1st July 2015 and not from 1st July 2014.
Dear Mr. Mohsin,
DeleteAs per notification, it is effective from 01.08.2014 and will affect tax liability of 2014-15.
Dear sir,
DeleteIs there any changes to tax rate or calculation method for a hotel renting rooms?
Thank you for the previous reply.
Yes. You may contact me after 10th of this month (June 2014); there is a likely decrease in valuation due to change of method for calculating GARV.
DeleteDear sir,
DeleteCould you update me on the changes to calculation of GARV for a hotel renting rooms.
Kindly could you also provide me with rates for category A,B & C for commercial rental, commercial self, residential rental & residential self.
Hi Sir,
ReplyDeleteI just found your blog about property tax and I need your help. My father's house is only 2.5 marla and we rental our house 2 floors against Rs.7500/month so (7500 x 12 = 90000) which is less than 150,000. and we pay 3000 property tax from many years. Now this year a person form Govt Text come to my father again and say that govt increase tax rate and our new tax is upto Rs.25000 and he demand bribe for reducing tax to Rs.8000.
Would you please tell me is that person right because according to your blog information i think our tax should be nil. could you please tell me how much tax we need to pay according to above information i send you of my house.
I look forward your response.
Sincerely,
NaQash
If your property is purely residential, you are to pay nothing. Apply to Excise and Taxation Office for exemption.
DeleteSo how i handle that person who demand bribe or blackmailing us or threaten us for paying too much tax if we not give him bribe?
ReplyDeleteCan we go to excise office and ask them to manage or calculate our tax is that good?
You should submit an application for exemption of Property Tax on the grounds that your property is less than five marla residential property.
DeleteDear sir,
ReplyDeleteCould you update me on the changes to calculation of GARV for a hotel renting rooms.
Kindly could you also provide me with rates for category A,B & C for commercial rental, commercial self, residential rental & residential self.
The calculation formula for GARV of hotel is likely to be simple calculation of GARV on commercial rates. It means room rents will not come into play while calculating GARV of a hotel.
DeleteFor sending the table of rates for categories, I need your email ID.
Kindly send the table of rates to jaleel200@yahoo.com.
DeleteIf I own and run my hotel will it be assessed as commercial rental or commercial self
I have emailed the rates.
DeleteThank you. You have been very helpfull.
DeleteKindly also clearify if I own a hotel will it be commercial self or commercial rental.
If you own the building, the portion in your use is self occupied. The portion being let out as room or in other ways is rented use of the property.
DeleteNOTE that the change is a LIKELY change till now. It is not a final change in force for calculating GARV.
Dear Mr. Shakeel,
ReplyDeleteI must say I am impressed with your effort to educate people on property tax as one cannot find much on this topic online and hardly anyone guides us in the right direction.
I wanted to know what is the current rate at which tax would be calculated for this year that will be due in the coming months? Last year for my property (commercial plaza) it was 25% I think. Has it been reduced to 10%? And if yes then does that mean the property tax will be cut to even less than half the amount I paid last year?
Thank you in advance for your time
Dear Ahtasham Sb,
DeleteThank you for your question.
Like many other taxpayers you have not got the true meaning of tax rate change. Let me make it clear for you.
You cannot tax a property and its components. For example, what is 25% of 8 shops and 5 rooms? Not possible to calculate!
You need a value assigned to a property for calculating property tax. The value of property is always on the rise - a natural trend in real estate market. The same trend is the basis of increasing value of property for tax purposes. (Value of a property for taxing it is not its market value in Pakistan)
The value of your property has increased about 5-10 times since 2001-02 - the time of last valuation by the Excise and Taxation Department in most of the rating areas. That is why you will not get a decrease in Property Tax; the tax is likely to have an increase of about two to three times. However, government is working to contain this increase below 50% to facilitate taxpayers.
Shakeel Sb, thank you for your prompt reply. However, I am still confused or perhaps you did not understand my question clearly. Let me cut it in to the following points for clarification.
Delete1) The punjab property tax payable this year (due date 30 Sep 2014) will be stated as 2014-2015, right?
2) For this tax year (stated above), is the property tax rate still 25% as it was last year?
3) Next thing we need is the annual rent value. You are right it is not possible to find the exact value as every property is different based on location, access, facilities, etc. and the value is also increasing each year. However, for rented commercial property this value as given on Punjab excise website is maximum of Rs.12. Has this value been revised? If yes where can I find the revised value table?
Here are your point-wise answers:
ReplyDelete1 - Yes;
2 - legally it is 25% till now; it will be 5% after notification by the government for use of new valuation lists prepared by Excise and Taxation officer concerned using new rates; and
3 - The maximum rate in new valuation table is Rs 120 per square yard per month. You may get new table from you concerned E&T office. However, if you can wait for a few days, I shall be able to send it to you in PDF.
Thank you sir, please email me the new rates as soon as they are available along with any new related rules and regulations to the following address, ahtashamsheikh(@)gmail.com
DeleteI have emailed the new rates.
DeleteThank you, email received.
DeleteShakeel sb, Can you please email me the new property tax calculation chart at shoaibehsan@gmail.com. Thanks
DeleteI have made some quick calculations and roughly it seems that the property tax is simply being doubled when calculated at 5% under the new rates. Do you agree?
ReplyDeleteAnd if so, do you think people would be willing to pay double tax? I agree tax should be increased when the value and rents of properties are increasing but it should be done on step by step basis. For example, people would be willing to pay an increase of 5-10% per year rather than a sudden increase of 100% ...
DeleteThe tax will be double if your property falls in the same category of valuation. What will happen if your property falls in from A category in past to B category now?
DeleteIn addition, the previous valuation table is of 2001. By your standard, increase 10% per year from 2001 to 2014 (13 years). How much tax should increase?
DeleteWhat will happen if we add effect of inflation and sky rocketing prices of real estate during 1999-2005 period?
That is the point. No one would accept a sudden increase of 100% even if it is after 10 years. If you have rented a shop and the rent has been same in the past years. Now the owner gives you a notice of 100% increase, would you accept it? Probably not, but if he had increased it on yearly basis you would have been ok with that.
DeleteAlso, rents of old buildings in most areas is still very low, hardly Rs.10-25 per sft. Modern plazas do have more rent but they are a minority. Even though the value of land and properties have increased manifold but the same value has not been reflected in their rents ...
DeleteYour comments carry weight.
DeleteI do have very solid counterpoints; however, I do not want to become a one sided player on this blog.
Let others (if any) comment on your comments.
Sir,
ReplyDeleteThis information has been very useful. I was wondering whether it would be possible for you to email me last years valuation table and for the years of 2013 and 2012. I require those for research purposes, and yours has been the only comprehensive where I was able to detailed and good information on property tax. I would be very greatful. My email is hpnesh@gmail.com.
Thank you
The valuation table for the last year and the years before has been the same. You can get it from
Deletehttp://excise-punjab.gov.pk/calc
Click on the button "property assessment procedure" on the top and it will show you the table and some added information in PDF format.
Thank you Ahtasham for your active participation.
DeleteThank you for the quick response, but I need a copy of the last years valuation table i.e. 2013, 2012 and 2011 for my research, and for Lahore. It would be much appreciated.
DeleteTry to understand,
Delete1) The valuation table for all those years is the SAME.
2) You can get a copy of this valuation table from the web link I provided above.
Now what's the confusion :) ?
No confusion sir, it is just that the valuation table in link is of the year 2002. I currently have the valuation table for 2006 but need the ones for 2013 and 2012. If they are the same, then the notification for the year 2013 would be preferred. It is for a research project, so you can understand why I need the proper copies.
DeleteThank you
The valuation table in the link has been the only official legal table for all the years you have asked for including 2013-2014. The new revised table which MIGHT come into force from next month is currently just a proposal and has no legal implication so far.
DeleteShakeel sb can correct me if I am wrong ....
You are right. The table you mentioned in ONLY table in force. There have been many proposals, but no formal approval of the tables other than one mentioned earlier.
DeleteBefore this table came into force, rents of properties were used to assess annual values of properties. It was as simple as multiplying rent by 12!
Mr. Shakeel Ahmed, this question is directed to your kind self. I was wondering as to how these valuation tables are prepared. It will be much appreciated.
DeleteThese valuation tables are prepared after sample survey of localities in a rating area. The purpose of the survey is to ascertain rent-ability of properties in a rating area.
Deletehi gents, i and must highly appreciate the useful information on this blog.Lot of good info. The dodge and corrupt tax officials and their touts scare ordinary people about the tax and ask for bribe. I suggest if everybody is able to question the officials of their due tax , in many cases it will be less than the bribe being offered.
ReplyDeletesir housing society ki jaga hai
DeletePlease clarify this statement. What you want to know?
Deletesir housing society ki jaga hai
ReplyDeleteSir what is the update on the change in tax rates? I heard tax on luxury houses has only been increased?
ReplyDeleteNothing
DeleteYes slabs for tax on luxury house stands rationalized.
DeleteDear Shakeel Sb,
ReplyDeleteI am retired government officer. I own a 1 kanal house. I came to know that 1 kanal house tax is exempted for government officers. How can i get that exemption. Where i have to go. What i have to do. Should i give an application etc.
Thanks in advance.
Dilshaad Cheema
Dear Dishaas Sb,
DeleteYou need to apply to the Excise and Taxation Officer for exemption of your tax u/s 4 of the Property Tax Act 1958. On your application, the Excise and Taxation Officer will grant exemption for the relevant year(s), but not for future years. You will need to apply for exemption every year till you have ownership of your property.
You should contact the Excise and Taxation officer of your district.
You will need to write the application on a plain paper, affix Rs 4 Court Fee, Attach a copy of your retirement notification or pension book, and submit the application by hand or by post to the Excise and Taxation Officer.
Any query?
This comment has been removed by the author.
DeleteAssalamoaliakum Shakeel Sb,
DeleteI went to excise and taxation office with the above mentioned documents but they told me as i was retired from University of Engineering and Technology lahore, there is no exemption for it.
As far as i know University is still a government institution and i receive pension from Punjab Government etc. Anything you can suggest/guide?
Shakeel sb, Can you please email me the new property tax calculation chart at salzafar@gmail.com. Thanks. I think this calculator is outdated http://202.166.162.27/Uipt/Property/Calculator
ReplyDeleteBy Taxation Calculation Chart, do you mean valuation table?
Deleteyes
ReplyDeletePlease mail me new valuation table at shoaibi.dga@gmail.com.
ReplyDeleteI am wajahat, shakeel sir i live in rahim yar khan can you please mail me the valuation table. My email id is wajahat1991@yahoo.com. thank you
ReplyDeleteValuation Table sent via email
DeleteValuation Table sent via email.
ReplyDeleteDear Shakeel,
ReplyDeleteAs per the valuation table shared by you. one of my property is to be taxed at 2.2 times my last property tax. yet tax chalan has come as 1.5 times my last years tax. Has there been a new valuation table or notification regarding property tax? your kick response will be very helpful.
The amount in excess of 1.5 times previous tax (2013-14) has been remitted through the notification. The remission is for the year 2014-15 ONLY.
Deletedear shakeel ahmed
ReplyDeleteCan you pls email me the notification for changes in property tax rates for the year 2014-2015. my email id is humbal_naeem@hotmail.com. thanking in anticipation.
Dear Mister Shakeel. I have got a notice of 53000 Rs tax for ten marla single story house with no water , sewerage and road in Gulrez colony. Even the tax caculator shows much less but since i donot know the category of my property so i am not sure. How to get it resolved. This tax is huge ....
ReplyDeleteGet the category of your locality first and then calculate the tax using the tax calculator. In addition, note that the fact used to calculate tax may be different from the information available with the department.
Deleteits interesting post so well its cool....
ReplyDeleteSherwood Park Hotel
Dear Shakeel Sahib, I am Umar from Bhowana, a tehsil of district chiniot. Kindly send me updated valuation table (chart) used to calculate property tax for rented shops in Punjab. Also kindly let me know as to how can I find the category of location where these rented shops are located.
ReplyDeletekindly send me updated valuation chart at my email umarjappa@hotmail.com
ReplyDeleteSir can you please email me property tax rate and rental income tax evalution method.
ReplyDeleteThe rate of tax is 5% of the value of a property; the value of property is assessed using valuation tables. You may contact your Excise and Taxation Office to obtain your local valuation rates.
ReplyDeleteAsalamo alikum
ReplyDeleteSir Shakeel Ahmed sab
Can u tell me about current rate of property tax in 2015 ?
And in which property tax impose?
Asslamo-alaykum
ReplyDeleteQuestions about Category:
1- If two residential houses are on same road, but one house is one year old, and other house is 40 years old, then will both houses go in same category (eg. category B)
2- If 10 years before, a house was in category B. Now that house is 10 years older, so now, will that house go in category C or will remain in category B.
------------------------------------------------------------------------------------------------
Question about Portion:
I do not want to make portions. Physically my building is single unit. Can property tax department, make portions, of my house, on the basis of two electric meters and two gates, without my application.
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Categories A, B, C, D, E, F, G, of Rating Area Faisalabad 3 Locality Residential, are available. But categories of Rating Area Faisalabad 3 Locality Commercial are not available. Why?
My house is in Residential Category B. What is the Commercial Category of my house? In online Tax Calculator, what should I write in column of Commercial Category?
ReplyDeleteAOA Shakeel Sb, Can you please answer the following query:
We are going to purchase a house that falls under Rawalpindi Cantonment Board. It is a single story house and appx area is 14 Marla. Covered area is app 1200 sq ft. I just want to have idea, at the time of purchase and transfer of property, what sort of expenditures would i be incurring, from transfer fees to Rawalpindi cantonment board formalities, everything. Just want to have a high level idea. Would appreciate if you can guide me here with relevant details. Thank you!
Regards,
Asim
WS
DeleteThank you for the query.
Normally, cost is around 6% of the value of transfer. It includes transfer fee, stamp duty, and other taxes. Presence of the seller of the property is required and that of buyer is not mandatory. You may need to get utility bills and house tax in respect of the property before transfer of ownership.
Shakeel sb, response awaited.
ReplyDeletereplied
DeleteThank you Shakeel sb for your reply. May i have some furtehr clarity.
ReplyDeleteAfter the transfer of property at katcheri office and all relevant charges incurred, do they have some specific requirements related to Rawalpindi cantonment board and some special charges. Or, this 6% should include everything?
Sir, I have 1 kanal Building and given it ton rent to a company. Company is asking me that your WHT will be deducted. Annual rent is 552,000/-. Can you please tell me that can I get exemption or the amount of tax to be deducted by the company as WHT agent.
ReplyDeleteAhsan Mehboob.
Dear Sir, what is the remission? I have received a remission of 5540. Will the next year tax be 10,000 instead of 4600 that i received this year after remission?
ReplyDeleteAlso my house is on the back of main road and not on main road. But tax form says my house is on main road. Does it effect the tax?
sir we receive rental income from commercial market .our anually rental imcome (21000*12)is 252000 .what is over tax rate for year 2015 -2016
ReplyDeletesir we receive rental income from commercial market .our anually rental imcome (21000*12)is 252000 .what is over tax rate for year 2015 -2016
ReplyDeleteDear Shakeel Sahib
ReplyDeleteI want to know that tax exemption to applicable to wife of retired govt employees if property if residential house is in her name.please guide.
This comment has been removed by the author.
ReplyDeletehello sir
ReplyDeletei want to ask you something that i have constructed my house'2nd floor now a days and a guy comes and ask for map of second floor i have the map but i have change something in style of my home and the guy is asking
for money what do i do??
Bhai mery awaam ko khul k batye k gvt taxes real kiya hain or kiya role hain .sqerfit k hisaab sy tax hota hai ya rent per jagha jo rent hota us hisaab sy
ReplyDeleteSir mari chachi bewaa hain unka 7 marly ka maakan hy jisky nichy 2 shops hain kia unko koi tex relief mil sagta hy
ReplyDeleteSir mari chachi bewaa hain unka 7 marly ka maakan hy jisky nichy 2 shops hain kia unko koi tex relief mil sagta hy
ReplyDeletekindly mjhe btayen k remission on propert tax kesy calculate hoti hy?????
ReplyDeleteWow, What a Excellent post. I really found this to much informatics. It is what i was searching for.I would like to suggest you that please keep sharing such type of info.Thanks Tax
ReplyDeleteGreat Content Property .. Thanks For Sharing
ReplyDeleteOhh this is Nice I like Your Blog!
Since it resembles My data Glad to see this
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