Taxation is a complex matter and requires property owners to have a thorough knowledge of it. This not only includes the tax rates but also information on the tax authorities, and where and when the tax is to be deposited.
Graana.com, Pakistan’s smartest property portal, takes a look at the online property tax calculator of the Punjab government.
Taxation in Punjab is done under the Excise, Taxation & Narcotic Control Department.
The department is responsible for the following:
Steps on how to use the online property tax calculator are given below:
Steps to calculate the tax for luxury houses in Punjab have been stated below:
PT-1 is a register of records and is kept by the taxation authority. This register notes the particulars, ownership, description, possession, use, annual rental value, and gross annual rental value of the property. A change in any of these particulars is to be noted in PT-1.
In order to get a PT-1 record, a property owner has to submit an application along with the following:
According to Punjab Urban Immovable Property Tax Act, 1958, the tax on immovable property is levied on the annual value of building and land located in a certain category. The tax is levied at a rate of 5 percent of the annual value.
The assessment of tax is based on the nature of land and the type of building. Tax authorities, while making their assessment, take into account the location of the property, for what purpose the property is being used i-e for commercial or residential purpose, and whether the property is being used the owners themselve or is rented out.
Property tax is to be deposited each year before the 30th of september with 5 percent rebate of tax for the current fiscal year. In case an owner is served a demand notice, they are to submit the tax at the State Bank within 30 days of the demand notice being served.
It is important to note that it is not necessary to deposit the tax in cash, rather property owners can submit the tax through a cheque along with the challan form in favour of the excise and taxation officer of the concerned district.
A rebate of 5 percent of total amount of annual tax is allowed if the owner of the property deposits the lump sum of the annual tax before the 30th of september.
In case an owner fails to pay the tax, they are to pay a surcharge of one percent of the gross payable tax.
The tax is exempted if any of the following cases apply:
This is a brief look at the property taxation process. In order to read more, visit Graana blog.
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