In This Post:
– Calculate Residential Property Tax
– Calculate Commercial Property Tax
Taxes are complicated and calculating property taxes, in particular, require a great deal of understanding and care. In this blog, we shall attempt to explain property tax rates in Pakistan, the government-issued valuation table and how you can determine the annual value. Rest assured, Zameen.com is here to help.
Property Tax is levied on commercial and residential buildings and land by the provincial governments of Pakistan. The Excise & Taxation (E&T) Departments of the provincial governments draft Valuation Tables regularly, which provide certain figures based on different measures for each province, and sometimes for different cities within a province. These tables use more or less the same formula in every province to calculate annual value (more on this later) but in different ways. Within the blog, you can also find links where you can calculate property taxes using formula in detail.
Take a look at the Residential Property Valuation Table released by the E&T Department of Punjab below, for example.
| RESIDENTIAL | ||||||||
| CATEGORY | RENTED | SELF-OCCUPIED | ||||||
| RATE OF LAND SQ. YD. (IN PKR) | RATE OF COVERED AREA IN SQ. FT. (IN PKR) | RATE OF LAND SQ. YD. (IN PKR) | RATE OF COVERED AREA IN SQ. FT. (IN PKR) | |||||
| Up to 500 | Exceeding 500 | Up to 3,000 | Exceeding 3,000 | Up to 500 | Exceeding 500 | Up to 3,000 | Exceeding 3,000 | |
| A | 23 | 18.4 | 23 | 18.4 | 4.6 | 3.68 | 4.6 | 3.68 |
| B | 17 | 13.6 | 17 | 13.6 | 3.4 | 2.72 | 3.4 | 2.72 |
| C | 14 | 11.2 | 14 | 11.2 | 2.8 | 2.24 | 2.8 | 2.24 |
| D | 11 | 8.8 | 11 | 8.8 | 2.2 | 1.76 | 2.2 | 1.76 |
| E | 8.2 | 6.56 | 8.2 | 6.56 | 1.64 | 1.31 | 1.64 | 1.31 |
| F | 6.5 | 5.2 | 6.5 | 5.2 | 1.3 | 1.04 | 1.3 | 1.04 |
| G | 4 | 3.2 | 4 | 3.2 | 0.8 | 0.64 | 0.8 | 0.64 |
This table seems difficult to understand. Determining property tax rates in Pakistan seems really complicated because there appears to be a lot of calculation and legal jargon involved. They are not nearly as complex in reality, though. So take a deep breath and let us walk you through this table step by step.
Determining the tax amount
Property tax is levied on the annual value of land and buildings. In Punjab, for example, the tax is levied at the rate of 5% of the annual value. Simply put, the annual value of a property is the estimated amount the property would fetch if rented out for a year (12 calendar months). Calculating the annual value is the only tricky bit in all of this. Once we have this value, calculating the tax is a breeze.
Other provinces use different rates. The Sindh government, for example, taxes properties at the rate of 25% of annual value. This seems huge when compared to the rates in Punjab, but the prices set in the valuation table, to calculate annual values issued by the Sindh E&T Department, are comparatively lower, so the final tax amount that you have to pay comes roughly within the same bracket.
The numbers provided to calculate the annual value of a property vary from category to category and from size to size, as well as depending on whether it has been rented out or is occupied by the owner in case of Punjab.
To begin with, if you don’t already know it, you may have to find the category in the valuation table for the area where you have your property.
Once you have the category, annual value is calculated in four steps:
i) (Total Land Area of a Property) x (Per square yard rent prescribed in Valuation Table) = A
ii) (Total Covered Area of a Property) x (Per square foot rent prescribed in Valuation Table) = B
iii) (A + B) x 12 = Gross Annual Rental Value (GARV)
iv) GARV – 10% of GARV = Annual Rental Value (or annual value)
Residential
The Valuation Table above gives us all the necessary information to calculate the tax, so using it, let’s calculate the property tax for a single-storey 1-kanal (500 square yard) home in a Category A area in Lahore rented out to a tenant, just as an example.
One kanal or 500 square yard is equal to 4,500 square foot. Let’s say the covered area in this home is 3,350 square foot. So according to the table, land of this size in Category A would fetch PKR 23 per square yard in rent every month, and the house built on it would fetch PKR 23 per square foot for 3,000 square foot and PKR 18.40 per square foot for the remaining 350 square foot in rent per month.
We know the land area for this house is 500 square yard and the covered area is 3,350 square foot. Going by the steps above, the calculation would be:
i) 500 x 23 = 11,500
ii) (3,000 x 23)+ (350 x 18.40) = 75,440
iii) (11,500 + 75,440) x 12 = 1,043,280
iv) 1,043,280 – 104,328 = 938,952
There you have it. PKR 938,952 is the annual value for the house we chose as an example. Since the Punjab government taxes property at 5% of annual value, the tax due would be:
0.05 x 938,952 = PKR 46,948
This number might vary slightly if the E&T Department in question taxes covered area and open land using separate metrics (as it usually does, which involves separate slab of rent rate being applied on vacant land and covered area). Nevertheless, the ballpark figure you will get with this calculation should be fairly close to the real tax sum.
Commercial
When it comes to commercial property, the Punjab government’s valuation tables now also distinguish between ‘Main’ and ‘Off’ properties within a category. This refers to the location of the commercial property, whether it lies on a main road or an off road. A main road is defined as a road with the width of 30 feet or more.
Please take a look at the Commercial Property Valuation Table issued in 2014 by the E&T Department of the Punjab government:
| COMMERCIAL | |||||||||
| CATEGORY | RENTED | SELF-OCCUPIED | |||||||
| RATE OF LAND SQ. YD. (IN PKR) | RATE OF COVERED AREA IN SQ. FT. (IN PKR) | RATE OF LAND SQ. YD. (IN PKR) | RATE OF COVERED AREA IN SQ. FT. (IN PKR) | ||||||
| Up to 500 | Exceeding 500 | Up to 3,000 | Exceeding 3,000 | Up to 500 | Exceeding 500 | Up to 3,000 | Exceeding 3,000 | ||
| A | Main | 120 | 96 | 120 | 96 | 24 | 19.2 | 24 | 19.2 |
| Off | 96 | 76.8 | 96 | 76.8 | 19.2 | 15.36 | 19.2 | 15.36 | |
| B | Main | 80 | 64 | 80 | 64 | 16 | 12.8 | 16 | 12.8 |
| Off | 64 | 51.2 | 64 | 51.2 | 12.8 | 10.24 | 12.8 | 10.24 | |
| C | Main | 56 | 44.8 | 56 | 44.8 | 11.2 | 8.96 | 11.2 | 8.96 |
| Off | 44.8 | 35.8 | 44.8 | 35.8 | 8.96 | 7.17 | 8.96 | 7.17 | |
| D | Main | 40 | 32 | 40 | 32 | 8 | 6.4 | 8 | 6.4 |
| Off | 32 | 25.6 | 32 | 25.6 | 6.4 | 5.12 | 6.4 | 5.12 | |
| E | Main | 30 | 24 | 30 | 24 | 6 | 4.8 | 6 | 4.8 |
| Off | 24 | 19.2 | 24 | 19.2 | 4.8 | 3.84 | 4.8 | 3.84 | |
| F | Main | 20 | 16 | 20 | 16 | 4 | 3.2 | 4 | 3.2 |
| Off | 16 | 12.8 | 16 | 12.8 | 3.2 | 2.56 | 3.2 | 2.56 | |
| G | Main | 15 | 12 | 15 | 12 | 3 | 2.4 | 3 | 2.4 |
| Off | 12 | 9.6 | 12 | 9.6 | 2.4 | 1.92 | 2.4 | 1.92 |
Now, before you get freaked out by the seemingly increased complexity of this table, let me tell you that everything is practically the same as the residential table, the only difference being the ‘Main’ and ‘Off’ provisions. Let’s do another hypothetical calculation so we can get a better idea of commercial property tax rates in Pakistan. The formula is the same as before.
Let’s say for example that you have a 100 sq yd shop on an “off road” commercial area that falls within Category B, which you are occupying yourself. Using the table above, you can calculate the annual value as follows:
i) 100 x 12.8 = 1,280
ii) 900 x 12.8 = 11,520
iii) (1,280 + 11,520) x 12 = 153,600
iv) 153,600 – 15,360 = 138,240
According to this calculation, the annual value for such a shop will be PKR 138,240. The property tax due would therefore be:
0.05 x 138,240 = PKR 6,912
Valuation tables and other details
Valuation Tables and/or tax details for the provinces can be accessed through the links below:
Excise & Taxation Department, Government of Punjab
Excise, Taxation & Narcotics Department, Government of Sindh
Excise Department, Government of Khyber Pakhtunkhwa
Excise & Taxation Department, Government of Balochistan
REBATES & EXEMPTIONS
Rebates are incentives that the provincial governments provide to taxpayers at their discretion. For instance, the Punjab government gives a rebate equalling 5% of the tax amount for paying the tax in time and in lump sum. This ensures timely and efficient tax collection.
All provinces declare specific properties which are exempted from paying property tax. These exemptions vary from province to province, and details can be found in the links we’ve provided above. As an example, the Punjab government does not tax properties whose annual value is less than PKR 4,320, or buildings owned by widows, minor orphans and/or disabled persons if they meet certain criteria.
I hope this detailed explanation of understanding property tax rates in Pakistan will help you keep calm when you receive your next tax challan. For more blogs on property laws and taxes in Pakistan, stay tuned to Zameen Blog.
Disclaimer: The valuation rates used as examples in this post were taken from the Punjab Excise & Taxation Department’s website. While we tried our best to ensure the figures are up to date, we cannot guarantee their accuracy. The examples are intended to be only a guide for readers, so please contact the relevant authorities for up-to-date tax figures in your province.
Comments are closed.
what is categories A, B, C, D… etc.. How do one know which category their plot/house belongs to?
Dear Mr Rasheed,
Categories are sort of zones within cities. You can find out which category your house falls in by visiting or otherwise contacting your local Excise & Taxation Department.
You forgot to mention that 5 marla houses in categories B to G are exempted.
yes u r right
kindly i request you that please tell me about the exemption of property tax.
kindly inform me about that..
Dear Sir,
Is there a property tax on a commercial office space (672 sq. ft) which is still under construction and cannot be used at present. Note that given the current condition of office it cannot be used for either a rental or personal use.
Wonderful article. Simple and easy to understand.
Thank you Mr Anwar. 🙂
How do inspectors exploit these formulae, to extort money from tax payers, for their personal benefit?
How can we Protect outselves from these miscreants tactics?
Best Regards
Dear Ahmed,
It is a sad reality in Pakistan that nearly every government department has some black sheep. This article was written precisely so everyone could know what goes into calculating the property tax, so that everyone is aware and therefore less likely to be ripped off.
That is a wounderful effort by Mr. Ibrahim and special thanks to “Zameen.com” but my experience with excise is that you can not win from them unless you are a lawer of exice and tax dept.
Thank you Mr Khalid!
Assalam o alaikum everyone,
Well I appreciate your effort. But a Country like Pakistan where every department is full of BLACK SHEEPS. And the GREEDY staff, who will just do anything when you throw bone against them. I guess if there is any law still exist in Pakistan? By living in Pakistan one can just pay the price of his existence, because there is no one who will listen to him. Rather its a property tax, Utility bills or any kind of taxes that are imposed. These tables can only hurt our feelings because if we actually calculate the amount of our property, that would lot more lesser then what we have already paid for many years. The only way is to just bribe the inspector who assess your property and he will write a less amount for you. (In fact this is not my idea, this is a routine practice of most of our Pakistani fellows).
I quite Pakistan last year and now I feel i live in a world where i have my rights, There is a Govt and department who listen to everyone regardless of the status. Not even a single penny could anyone claim from you without any logic.
I wish Pakistan could improve its internal system one day.
Mian Najam
(CANADA)
Dear Mr Najam,
I am sorry to hear that your experience has been so dreadful. I am, however, glad that you are using Zameen.com to stay in touch with property matters in Pakistan while you are in Canada. At heart, we are all true Pakistanis who love this country, and I’m sure you do too. We are just angry because it is being destroyed by corrupt practices.
Dear Ibrahim,
nice article, but it fail to tell me what those categories are , are they solely at the discretion of the inspector? or some areas by default fall in those categories, for example is DHA Lahore in category A , by the way which category Bahria town block C will fall in ?
Thanks
Kashif
Dear Kashif,
Sorry it took so long to get to your comment. No, the categories are not at the discretion of inspectors. They are clearly defined areas of the city, and you can find out what category area your property falls in by visiting the E&T Department.
Mera jo Ghar hai wo 610 sq. ft. hai. Mujhe yearly Kitna tax paid karna hoga.
Please solve my problem and i pay my property tax.
Thank you
Dear Mr Asif,
Mujhe kuch mazeed malumat chahye hongi aap ka tax calculate kernay ke liye. Aap ka ghar kis shehr ke kis ilaqay main hay? 610 sq ft total area hay ya sirf covered area hay? Agar total area hay tau covered area andazan kitna hay? Ghar main khud muqeem hain ya kisi ko keraye par de rakha hay?
i clearly understand but still 20-25% of ARV is being collected by E&T dep. i think 5% applicable on 2015
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?
2. if i give a commercial plot on rent which is not constructed will i pay tax on that plot?
Dear Yahya,
As of the latest annual budget, 5% is the rate at which Punjab E&T is taxing property. As for your questions, to the best of my knowledge:
1. The 2014-15 fiscal year began in June, so your property would be taxed at 2014-2015 rates. Also, you have to pay property tax even if your property is not rented out. Only the rate will be different but the tax would still be applicable.
2. Yes, but only the land area will be included in the calculation, not the covered area.
I build a shop on the land leased from Army , I pay Rs100,000 rent per year to Army for leasing this land for 15 year, Do I have to Pay rental income if I rent-out the shop to anybody ? and what other kind of tax I have to pay for that shop? Thankyou
Dear Naseem Sb,
For this question I would like to refer you to Mr Shakeel Ahmad. You can contact him here:
Mobile 0344-7055262
Email: Shaqeil@gmail.com
AoA.
I found this site to be very informative.
So therefore i am asking you about the property tax of my own house at Hayatabad peshawar. Its one kanal. Please do inform me about its latest property tax. Coz i was paying about 3500 per year, but now they it is almost 12 thousands. Why there is so much differences.
Dear Mr Farooq,
I would need a bit more information. How much is the covered area of your house (in square feet), is it rented out or self-occupied, etc. Please let me know and I will try my best to help you.
I have a property which i have given to a a government office. They pay me an X amount of rent along with income tax deduction. Do i still have to pay commercial property tax ??
My best guess is that you are still liable to pay property tax. If you are located in Punjab, please contact Mr Shakeel Ahmad to confirm.
Mobile 0344-7055262
Email: Shaqeil@gmail.com
Sir, I am a Veteran, Retired from Pak Army on medical grounds due to after effects of 1971 war and prolonged captivity in India. I have three daughters(all married)and my wife is a retired Asstt/Proff and unfortunately disabled(permanantly incapacitated and was retired from service). We five jointly owned the following house, in all 20: Marlas and each one of us is having 04 Marlas. Keeping in view all the aspects: Are we exempted from the property tax please: Thanking you and regards Major Mian Muzaffar Gul H/NO: 171/H-1 St:10 Phase 2 Hayatatabad PS: kindly advice at my email address ie mianmuzaffargul9@gmail.com
Dear sir,
First off, I would like to salute your brave service to our nation. It is because of exemplary people like you that people like us sleep soundly at night, so my sincerest gratitude goes out to you.
The situation you have described is fairly complicated from a tax point of view. Are these five different houses built on 20 marlas, or a single home that you have divided amongst yourselves by mutual consent? How much is the covered area? Is each 04 Marla portion separately owned by each member of your family? Please let me know and I will try my best to help you out. Meanwhile, I will check whether Veterans get any special exemptions per KP Excise & Taxation Department rules.
Salam,
This article gave us so much needed information that would other wise would be difficult to get from corrupt staff. Can you guide us that
Are these taxes on rental properties goes under INCOME TAXes ?
or these are property taxes other than income taxes.
Dear Atif,
Thank you for your kind comments. To the best of my knowledge, Income Tax and Property Tax are completely separate. However, if you are renting out a property and getting a monthly income from it, then that income is likely to be taxable in addition to the property tax you are going to pay.
Thanks Mr. Ibrahim Suheyl for wonderful information. Can u plz share some information about Maintenance charges, actually in our society in Karachi we have 5 categories of flats as;
1. Type A+ covered area 2256 Sq.ft (ground+1st floor (Duplex))
2. Type A covered area 1573 Sq.ft
3. Type B+ covered area 1365 Sq.ft
4. Type B covered area 1183 Sq.ft
5. Type C covered area 900 Sq.ft
So how can we impose maintenance charge. Thanks
Thanks for the compliments Mr Tajuddin. I don’t have much information about maintenance charges in individual societies, but I will consult an expert and try my best to get back to you with the relevant information.
asssalamu alaikum thanks for this information.
Dear MD Hanif,
You’re quite welcome sir, please keep reading the Zameen Blog for up-to-date information on everything real estate!
Salam Ibrahim, Extremely informative blog. I really appreciate. Please guide me, what will be tax rate if I rent a small building for a private school in Lahore suburbs or run a private school my self in my own building. I am really upest how tax inspectors are blackmailing people in my area. God less you for your support.
Dear Mr Ali,
Thanks for the compliments. To the best of my knowledge, you won’t have to pay property tax if you are renting a building – taxes are applicable only if you own the property in question.
Is your own building a commercial one, or have you had it commercialised? That will determine your tax rate. I will try to help you as best I can.
Salam Sir, i need to know what is tax remission ?
Wassalam Safa,
I’ve unfortunately not been able to find anything authoritative on the matter. As soon as I find some authentic information, I will let you know.
Thank you for the information Ibrahim Suheyl,
Could you also do an article on the Annual Taxation Rates for people living in Cantonment Areas?
The Army with Cantt Board take a different approach to Taxation Law at times … not always, from the Punjab Government.
Appreciate It.
Dear Arush,
You’re quite welcome. Nice to see you on Zameen.com, you were one of the most professional realtors I’ve ever had the pleasure of dealing with in Lahore. 🙂
I’ll do a bit of research and try to churn out an article on taxation in cantonment areas, stay tuned!
My Dear Ibrahim Sahib.
Excellent article indicating your mental clarity on the subject. I am a salaried person and a regular tax payer since 1995. I had a plot in DHA lahore that I sold. In search of the guideline that what tax I am supposed to pay, i came across this article.
The plot I sold is a declared plot in my wealth tax return. I have purchased another plot in a cheaper sector saving Rs 2 M to meet my urgent needs. Do I have to pay something to FBR?. If yes, how to calculate it. I shall be obliged for the help. Thanking you in anticipation
Dear Colonel Sahab,
Thanks for your comment. As best I understand it, property taxes come into affect after a certain amount of time after the purchase, which the E&T Department can best tell you. However, whenever your new property becomes taxable, you could use the formulae I’ve highlighted in the article to calculate the applicable tax. If it is too complicated, I’d be happy to help you calculate if you could provide me certain details.
Our source in the Punjab E&T Department, Mr Shakeel Ahmad, can also help you with some authentic information, he can be contacted here:
Cell: 0344-7055262
Email: Shaqeil@gmail.com
There may even be some difference based on Filer and Non-filer status, so it would be best to consult this gentleman.
I am obliged Ibrahim sahib. Allah bless you.
It is my pleasure sir!
Ibrahim sahib
wonderful effort at ur part.why it is so that the staff of property tax department seals the relavent property on sundays or on holidays.suppose one has opened a school where 400 students are studying u r paying rent to the owner it is the owner who should pay the property tax to the department. next day when
students visit the school they find it sealed.school administration is answerable to the parents as well.students has to appear in exam shortly . in such a situation what is the fault of administration.can tax deptt. staff act like this and r they justified. please comment.
take care God bless
yours truly
farooq niazi
Thank you Farooq Sb. Sir to the best of my knowledge, it seems like the owner of the property is at fault here. It is not the tenant’s responsibility to pay the property tax, and I suppose if the tax hasn’t been paid in time the authorities might be justified in taking action. Especially if the owner has been notified several times but still hasn’t paid.
That said, authorities are prone to taking overly harsh action sometimes.
why dont u put clear words
Thanks for the details. I have three questions.
1. Do property tax applicable on residential plots also.
2. Do the same rate apply in Islamabad as federal territory.
3. Up to which size house is exempted from property tax.
Dear Sir,
i want to bye on plot and i am living in dubai
my relative explain me if i bye on only my name 12 Marla the property tex wil be duble or more then
if i bye on 2 name like my 6 Marla on my wife’s name and 6 Marla on my name then tex will less
is there some rule like that please inform me thnks
Why should I pay tax in Pakistan?? Just that these traitors and their families can enjoy with it? The state which does not even give their people protection of their lives, how can such government claim for taxes. They don’t have any credibility. I am paying 37% taxes in Denmark. But they are giving me free education, monthly stipend, Free medical treatment, Housing, Food. And If I am jobless at some point, they are responsible for my salary and they will give me salary at my home. Pakistan cant become a welfare state by snatching food from poor peoples. There is no jobs, no electricity, no basic facilities how can such govt ask for tax. People are just hilarious I would just say
Sir, AoA, i’m going to purchase a residential plot of 1800 Sq Ft. i wan to know the govt fee for transfer this plot in my own name. the plot is situated in wah cantt.
Dear Mr. ibrahim
This is an excellent website. I was delighted to find this information. Can you help me with information regarding calculation ARV (and the relevant property tax) of an approximate 450 yards house in Lahore Cantt. I also saw the values you calculated by the Residential Property Valuation Table released by the E&T Department of the Punjab government for 2014, but I am guessing that this valuation should not apply to Lahore Cantt. The property is double storied and covered area is roughly 4500 sq ft with siz of plot 450 yards approximately. It is part of a plot of a bigger house (since it is only 450 sq yards, it is less than 1 kanal in size and hence not an independent property). It used to be on rent for Rs. 58,000/per month with downstairs portion as guest house. Throughout this period the Property Tax was Rs.117,000 which I thought is high.
Now, the property is on rent for 22,000 per month with only downstairs portion rented out to a single family (no guest house) and upstairs portion is used by the landlady herself. The property tax bill has come to 135,000 again (payable by end of June) and it would be useful to try and find out why the bill is so high.
Is there an email I can use to contact you and send you the relevant information along with details, as I think it will be easier to do that, rather than write everything here. Will you be able to look at that?
Ali
Dear Mr Ali,
You can contact me at ibrahim (at) zameen (dot) com and I will do my absolute best to help you. And If I can’t, I will recommend someone who can, so please do get in touch!
Regards,
IS
I also require some property work to be handled and I wonder if someone can be recommended to assist. Ofcourse the necessary payments will be made
Dear Mr Ali,
What sort of property work are you looking to have handled? I will recommend someone accordingly. If you don’t wish to discuss it publicly, please email me at the address I’ve posted in reply to your comment above.
Regards,
IS
Sir
please give me the calculation of tax as per following detail.
Typer of Property=Commercial plaza at Main MM Alam Road with 1 basement and 5 stories.
Land=1 kanal
Cover Area=4500 Sf. of each story
Thanks
Abdul Majeed
Dear Mr Abdul Majeed,
I’m emailing you my phone number. Please give me a call before 6pm whenever you can, and I’ll do my best to guide you.
Regards,
IS
Mr. Suheyl
I have replied to your email and I am writing also to request your contact number (I also sent the request in my email).
Ali
A very informative article especially when tax collecting is hot in d news ! Plz tell me , are the pakistani nationals residing outside pakistan exempted from the proprty tax..in punjab? Cz i went thru the literature on the fbr website n cudnt get a clear answer..
if you live out of the country for more than 180 days you are treated as non residents. the tax regime for non residents is different
Dear Ibrahim,
Is there any article or information describing the property taxes for overseas Pakistanis, I have some vague information that overseas are exempted from property taxes legally, but to what extent and how I am not clear about it.
Thanks
Dear Imran,
I’m sorry we haven’t written one specifically covering this topic, so thanks for the great idea! We’ll InshaAllah cover it shortly after Eid.
No exemption for property tax – only on foreign remittances.
AOA. Does this include Walton Cantt property tax as well. Because I have been paying 15% of the rent as in the rental agreement. It turns out to be that I am paying about 2-3 months rents as property tax. And now I am confused with this article. Also how to get to know about zones. Is this zone information available on any website. Thanks.
Sir i am living in the rented house plot size is 8 marla i.e200 Squre yard. I am livinf on ground floor whose cover area is 1616 ft2′ the total covered area of the house is 3800 ft2. The house is on main road and fall in category A. what will be the tax which my owner have to pay?.
I am unable to understand that in calculating ARV why there are subtracting 10% of GARV from GARV . any logic ? the only logic which comes to my mind is that probabaly they minus the 10% rent increase
10% is maintenance of the house on annual basis
@umar, I believe it is annual building maintenance charge that is being deducted.
Before reading my query please note that Foreign remittance ( amount received from out side of country in dollars etc and encashed in PKR) is exempt from tax.
So, if an expat has foreign remittances in his personal account in Pakistan than how he can pay to seller to buy land as if he will transfer that amount to intermediary (normally in chunks as big amounts can’t be transfer online) than it will not be considered as foreign remittance and whole amount will be chargeable to income tax.
Please guide me as people here at zameen.com must be expert in these issues.
Dear Mr Ibrahim, Assalam Alaikum,
I am planning to sell my land (404sqm) transferred to my name in 2006. Land is in Scheme 33 Karachi Quetta town cooperative housing society. what are my tax liabilities after sale.
Regards,
junaid
Wassalam Mr Junaid,
To the best of my knowledge, the Capital Gains Tax does not apply to your transaction because it is only applicable if you’re selling within 5 years of purchasing the property. Sellers generally have a better deal than buyers and have to pay less taxes. You’ll have to consult the authorities on whether you’re required to pay Advance Tax though.
Regards,
Ibrahim
Hi,
I wanted to know if this property tax is applicable in DHA Lahore properties as well because I could not find DHA locality in the list. Thanks.
Regards,
Asif
Dear Mr Asif,
Yes, the property taxes apply to DHA Lahore properties as well. The collector may be different, i.e. DHA Lahore might fall under the purview of the Cantonment Board, but the taxes would nevertheless be applicable on all immovable property.
Regards,
Ibrahim
Dear Mr Ibrahim,
I am using the property tax calculator site on webiste http://www.excise-punjab.gov.pk/Calculator to calculate tax.
Below it gives 3 options:
1) Old Calculator
2) New Calculator
3) Net tax payable
If you can please let me know what is the difference and which option I should be using to calculate the tax on a commercial multistory plaza. Thank you.
Regards,
Asif
Hi I just wanted to ask if there is a residential rental property In cantt could that be transferred in to the comercial tax bracket for the tennent to oporate as an office
sir hmary 6 marla ka mkan hai jo k mere father k name hai hm 3 bhai aur 2 brother hai hmain tax waly notice daty hain tax pay kro kia hmara mkan tax payer ma ata hai
sir hmary 6 marla ka mkan hai jo k mere father k name hai hm 3 bhai aur 2 brother hai hmain tax waly notice daty hain tax pay kro kia hmara makan tax payer ma ata hai and my father has been died before 4 year ago
Assalamo Alaikum! I am a non-resident Pakistani and I have recently registered as an active tax payer. I regularly pay my property tax. Someone told me that there is another tax called – wealth tax. Could you please tell what is that tax? Who should pay and what is the % – I mean how is it evaluated? Thanks for your valuable comments.
MOST URGENT
Dear Sir,
Confirm the property tax rate on under construction / uncompleted residential house for own use if applicable,
The excise department want to charge the property tax on my under construction house in sindh
What is legal position
Waiting for your early reply
Mujahid Ali
A A
sir i am running a private school in 10 marlas upper storey is being used for residance. Owners include a widdow 7 sons and a daughter. i am one of them
Building is about 400 meters away from main road. Tax department is heressing me that they will arrest me .
am i liable to pay tax .
regard
kaleem danish
I have built my house on 1kanal land in Wapda town Lahore completed in November 2014. I have not yet received any property tax challan from E&T department. May I know, when property tax will start on newly constructed house.
Thanks & regards,
Adeeb
Aoa- I live in Karachi and going to buy a house of 120 yards in scheme 33, when I ask owner about the property tax he and estate agent told me that as it is 120 yards house so it is exempted by the govt . kindly confirm me is it true ?
Is there a property tax on a house space 7 marla. Note we are two brothers and 3.5 marla each share
How much to pay property tax for 5 marla plot having half area rented as residential and half constructed area rented as shops. The property itself is not declared as commercial property in LDA.. please suggest in this respect thanks.
what is the range of area for which the property tax is exempted in the case of flats located in Karachi gulshan-e-Iqba?
What if someone has a plot but it is not rented out (for obvious reasons – an empty piece of land isn’t much use to anyone). How will tax be applicable in this case?
hi i have 10 marla house in pakistan jhelum near nadra card office im paying 23000 rupess a year my cuzain pays because im in uk i dont know whos eating of me tax man all cuzain??? plz help me how much should i be paying???
Dear Ibrahim Suheyl,
My question related to overseas income tax and as well as property tax.
i m living in Qatar and doing job, i send money in my brother bank account or some time in my local pakistani bank account through any exchange in qatar. How can i avoid myself from income tax i mean what i have to show proof in pakistan? and also i have one commercial shop in pakistan which i purchased before one year as the money which i send in pakistan.
plz explain how can i avoid myself from property tax ?
thanks
cheers!
Maqsood
Thanks for your cooperation with accurate information on tax at property in punjab. I am greatfull if you provide a new orders if any of 2016 . I live in residential area of Rawalpindi in 3 marla house and I received a tax form of 6000 rupees in june 2016.
Salam
Ibrahim Brother
I hope you are doing good
I found your article a bit late
I tried to understand it but couldn’t
I have a property which is 1769.63 square foot (6 and half Marla) and its covered with basement and G+4
Building which is rented its not on a main road but a busy one situated in Jaranwala City the monthly rent is 1 Lack rupees which not fixed few months its 80,000 rupess i guess it falls in d category
Now how do i calculate the tax for it because the tax guys never tell. I want to know the procedure how do we calculate
Thanks
Sir can you tell me the constructed area in each floor. I help you in calculation. If constructed area in all floors is 4000 Sq ft than your P Tax is Rs. 72517.00 as below being Commercial Area
in off Category Land Constructed Area
Rate sq. yard Amount Rate Sq. ft Amount
D—–off 32 196.63 6292.0 32 4000 128000
MRV GRV Repair NAR P Tax–5%
134292. 1611504 161150 1450353 72517
Dear Sir
Want to sale agriculture land measuring 6 Kanals in District Mardan KP. Can you please tell me how much tax will be deducted if i am selling this land 300000/ Kanal ?
Please reply urgent.
Thanks
Dear Ibraheem Sahib
The age of the property has direct link with Rent and maintenance expenses. The Rules are Silent?
When Annual survey is conducted for next year Evaluation?
very very very nice and simple to understand. Allah may increase ur knowledge.
Could you pls help me to calculate the property tax on Residential 7 Marla Self Residential House, which is located in Non commercial Area, Off Road, (Rabbani Colony, Peoples Colony # 2, Faisalabad).
Department has sent a notice of Rs. 1,116/- payable till 30th of september.
I AM GOING TO CONSTRUCT 2 MARLA SECTOR SHOP IN DHA PHASE 2 LAHORE, PLEASE LET ME KNOW HOW MUCH WILL BE TIP TAX BEFORE STARTING CONSTRUCTION.
Hello sir,
all i want to know is that is there any tax applicable on property under cantonment board ( fard e haqeeqat) or they are not in the list?
thanks in advance
What is the tax rate on shops in rural areas of punjab pakistan??
What is the rate of tax on shops in rural areas of Punjab Pakistan??
Sir
would you guide how to improve duty tax properties in the interest of govt as well as clients. at present it is not balanced therefore people and estate property work is badly disturbed.
Mr Ibrahim
I can make head or tail of the notice I have received from ETO Sindh. I have been charged Rs. 49,488 (PTA) and Rs. 2,565 (PTC), totaling Rs. 52,053 for a 160 yard plot and equivalent double storied house over it in Gulshan-e-Iqbal, Karachi. I tried to calculate the tax but failed to reach this figure. Can you help out?
AOA I’m Living in usa person who look after my house in Kharian Punjab he told me some one came and put some sort of tape at the door could you tell me what’s next
Ask the guy if there is also a notice pasted on the door. You should also contact the land development authority that manages property matters in Kharian. First find out what’s the tap about.
I purchase plot at Fatima Town rawalpindi for 5 marla
how puch tax I have to pay for registry/intaqal
I purchase 5 marla plot at Fatima Town rawalpindi. How much tax i have to pay for Registry/Intaqal
I am living in karachi and owned a ground plus 2 building of 80 sq. yards.
I have received a FORM PT 7A from excise & taxation department for giving details of property.
Please tell me is my property is exempted from property tax, as it is just 80 sq. yards? Also tell me the maximum exemption in terms of sq. yds. of a house.
I am living in Malir, Karachi. I owned a ground plus 2 house, which measures 80 sq. yards. Recently, received a notice with Form PT 7A from Excise & Taxation Sindh for providing details of the house for property tax assessment.
Please advice whether 80 sq. yards is exempted in terms of property tax?
hello sir/ madam
i have 5.5 merla double story house located at sherwani town 18 km ferozpurroad lahore. it round 1497.38 sq feet. my father is retired government teacher, we give one portion on rent. should we have to pay tax, if yes than please tell me how much?
I have 10 marla house in wapda town lahore whose rent is 47000 starting from November 10,2017 please tell me the amount of property tax on it for the current year.
Tanveer Hussain
I have rent out 10 marla house in wapda town lahore starting from November 10,2016 please tell me the amount of property tax on it for current year.
I have rent out 10 marla house in wapda town lahore starting from November 10,2016 please tell me the amount of property tax on it for current year.
Assalaam alaykum and hello my friends,
I have an issue and urgently require assistance and help. My family in Pakistan have robbed me of my inheritance, I am an orphan as both my mother and father are now dead. I spoke to my step cousins and step grand mother about my grandfathers land and my father inheritance.
No one is willing to help me, I live in UK and was born here and am fully aware of the greedy people in Pakistan. My family reside in Rawalpindi and I believe my deceased grandfather owned land all over Pakistan and property in both Rawalpindi and other cities.
I have been informed by using this new taxation system I can trace my grand fathers land/property and also my fathers inheritance and there my inheritance.
Please can you provide me with emails address of the respective Excise & Taxation depts. that may be able to help me or do you know of anyone who can help me. Please do reply.
Please get in touch with Zargham Lukheser with reference of this blog: 92-300-847-4169. The man specializes in dealing with such cases.
What is Definition of Covered area as per Excise and Taxation Punjab???
I have rented out a plot in punjab where tenants have installed a shed without boundaries with the help of poles on 4 corneres, Will that area be considered as covered area????
What is definition of “covered area” by Excise and Taxation Department Punjab???
I have rented out a commercial plot and tenants have installed a shed without proper boundaries(by installting poles on 4 sides) for rain/sunshine stopping. Will that area be considered as covered area??
Hi.
I have 1 kanal double story house. I live on ground floor and I rented 2nd floor. How tax will be calculated? I mean RESIDENTIAL SELF-OCCUPIED or Rented?
Thanks in advance for reply.
regards
Dear sir,
Is any exemption for property tax for overseas pakistani in punjab pakistan.
I have 30X55 FT land area in okara with double story . almost area both story is 2720 sft . kindly calculate property tax. Thanks.
Dear sir,
is there any exemption of property tax for overseas pakistanis in punjab pakistan.
if i have plot siZe 30X55 WITH DOUBLE STORY having almost 2720 sft covered area of both story. How much will be property tax.House is in Okara.
what about remission notification? For 2017-2018
Regards,
Iqra
Assalam o Alykum kindly guid me
i) Is it internation formula Sq yard X 12.8,Sq feet x 12.8
ii) How to determine abut grade A to G Some people lives in gulberg Lahore and some lives in village of Lahore.
iii) Shop in main market/bazar,shop on the road, shop in mohallah etc
iv) 2 marlas shop on ground floor, self rasidance on 1st floor how much tax be paid to ….
Dear,
That is my friend purchased commercial property 16/5/2015 and that time he didn’t move Application to excise and Taxation Dpt and now excise sent commercial property rent 5000 while this assessment be rented not self while my friend using self shop. further one need info is that how to write Application to excise dpt.
Regards.
M Suleman
dear sir, i am having 2.75 marla house in cantonment baord. i have rent out since 6 months. we are depositing annualy property tax since long. but problem is that now they are sending us commercial tax please guide us what are necessary measure has been taken before they send us notice. what will be the commercial rent property tax.
AOA
We have an educational institute around 400 acres but we occupied(covered area) 15 acres out of it. We have NPO as well.
Institute located at Gadap town near northern by pass.
What rates we have to follow and is there any exemption?
Dear Ibrahim Suheyl,I am a retired Military Officer and own a 500sq Yds House(Basement plus two stories) in E-11/4 Sector (Police Foundation) Islamabad.Residents of this sector have recently received notices from CDA for deposit of Property tax. The issue date is 1 August 2018 but the notices were received on 16 Sept 2018 to be paid by 30 Sept 2018.The Tax levied is Rs.108810/=
I understand that I do have some exemption being a former Government servant and this is my only House in Pakistan.CDA does not provide any services in E-11/4 sector.Kindly clarify whether CDA can impose taxes without any previous notice and with effect from which date.
Hi Ibrahim,
Wonderful article, specifically explained the Pakistan property tax to a newbiee. I am working for a foreign company which is about to going to Islamabad for business. I’m having a lot of questions on taxation as well as the govermental policies related to real estate area. Just wondering if you could help with answering some of the questions and your effort will be very much appreciated.
regards
Nathan
Dear Nathan, i am speaking to you on behalf of Ibrahim Suhyel.
Please share your list of questions; Mr Suhyel will get in touch with you to explain these.
Hi Samra, thank you for the reply. As I’m trying to picking up some basic points in the taxation system, I’m wondering if the tax regime on builders and developers already changed to a fixed one? And beside the tax montioned above, as a builder or developer, what other taxes we need to be conidering of？ Thank you very much.
Also, I also have some confusion on sales tax and Federal excise tax. I saw some people mentioned that sales tax has been transformed to VAT, and rate is 15%, and I assume the VAT or ST would be deductable?
thanks
Nathan
Dear Ibrahim,
I have an apartment in Lahore Cantt and annual rent is Rs540,000 (Rs45,000 per month. Please advise what would be the Lahore Cantonment board rent (Rs or in percentage).
Moreover, I am a non-resident so is there any reduced percentage of income tax on rented property for non-residents in cantonment areas.
Thanks
Taimur