What taxes and transfer fees do you have to pay to buy property in Defence (DHA) Lahore, Karachi or Islamabad? This is, perhaps one of the most common question received on Zameen Blogs, particularly the taxation blogs. The answer can be complicated, and slightly varying, depending on which DHA project you are talking about. It can also be different, depending on which phase it is, since DC rates differ. So here it goes:
Property taxes and fees in DHA Lahore
It is not surprising that DHA Lahore has the most complex list of taxes out of the three big DHAs. Its expansion, its location, and its varied simultaneous jurisdictions make it difficult to navigate the whole sea of knowledge. Though, we must hand it to DHA Lahore for making its information conveniently available all around. Without further ado, following are those taxes and fees, with special help from MY Ventures CEO Imran Rashid:
- Transfer Fee: This is the fee you have to pay when you are looking to obtain No Demand Certificate (NDC) for a property.
- Membership fee: A fee paid by new owner for membership of DHA.
- Membership form: This can be bought from DHA offices.
- Transfer of Immovable Property (TIP): This tax has to be paid for transfer of property in cantonment boards. Since DHA Lahore is spread over areas under Walton Cantonment, or Lahore Cantonment, TIP has to be paid for transfer of property to the cantonment boards of either of these cantonments, depending on the location of your property.
- Stamp Duty/Capital Value Tax (CVT): Two provincial taxes that are usually jumbled together for the sake of convenience and levied at the rate of 5% of DC rates.
- Withholding Tax (WHT) or Advance Tax: A federal tax that is levied at a rate of 4% (for non-filers), or 2% (for filers) of the FBR valuation of the property. However, under Budget 2018-19, it is supposed to be levied on the declared value of the property, so that is how it will be levied in the future, once the Directorate of Immovable property of FBR has been established. The percentage can also change, as under Budget 2018-18 1% Advance Tax was to be levied on purchase of property.
The transfer fee, and membership fee is the same throughout DHA Lahore, no matter the phase. However, because DC rates differ on property in different phase, the Stamp Duty/CVT and WHT levied from different phases, the table will provide you with a comprehensive idea of how (and how much) the taxes can differ between various phases. This is for purchase of 1-kanal plot. All values are in Pakistani Rupees (PKR).
| Phase | DC Rates/Marla | Transfer Fee | Membership Fee | Membership Form | Stamp Duty & CVT | WHT (Non-filers) | WHT (Filers) |
| Phase I | 600,000 | 76,500 | 37,500 | 350 | 600,000 | 480,000 | 240,000 |
| Phase I (K-Block) | 620,000 | 76,500 | 37,500 | 350 | 620,000 | 496,000 | 248,000 |
| Phase II | 520,000 | 76,500 | 37,500 | 350 | 520,000 | 416,000 | 208,000 |
| Phase III | 520,000 | 76,500 | 37,500 | 350 | 520,000 | 416,000 | 208,000 |
| Phase III (Y & Z Block) | 710,000 | 76,500 | 37,500 | 350 | 710,000 | 568,000 | 284,000 |
| Phase IV | 490,000 | 76,500 | 37,500 | 350 | 490,000 | 392,000 | 196,000 |
| Phase V | 350,000 | 76,500 | 37,500 | 350 | 350,000 | 280,000 | 140,000 |
| Phase VI | 330,000 | 76,500 | 37,500 | 350 | 330,000 | 264,000 | 132,000 |
| Phase VII | 280,000 | 76,500 | 37,500 | 350 | 280,000 | 224,000 | 112,000 |
| Phase VIII | 260,000 | 76,500 | 37,500 | 350 | 260,000 | 208,000 | 104,000 |
| Phase IX | 200,000 | 76,500 | 37,500 | 350 | 200,000 | 160,000 | 80,000 |
| Phase XI | 200,000 | 76,500 | 37,500 | 350 | 200,000 | 160,000 | 80,000 |
Property Taxes and fees in DHA Karachi
The two main taxes that buyers have to pay in DHA Karachi while buying property include:
- Capital Value Tax (CVT): Where the value of residential plot is recorded
From 240 sq. yd. 499 sq. yd: 2% of the recorded value.
From 500 sq. yd. to 100 sq. yd: 2.5% of the recorded value.
From 1001 Sq. yd. and above: 3.5% of the recorded value.
Where the value of residential plot is not recorded, the CVT is calculated as PKR 75 per sq. yd.
- Withholding Tax (WHT) or Advance Tax: This is a federal tax, so it is the same as that in DHA Lahore, that is, 2% of the FBR value in case of filer, and 4% of the FBR value in case of non-filer.
Property Taxes and fees in DHA Islamabad-Rawalpindi
- Transfer Fee and Membership fee: The transfer fee in DHA Islamabad-Rawalpindi is PKR 115,500.
- Stamp Duty/Capital Value Tax (CVT): Parts of DHA are located in Islamabad and, if you are buying property there, you will have to pay different amount of CVT. Some parts of Phase I, Phase II and Phase V, according to Babar of RAK Properties, fall in Islamabad. Here you will pay 2% of the value of property.
On the other hand, if your plot is located in the phases that are part of Rawalpindi, your CVT will be same as that of DHA Lahore, that is, 5% of the DC rate of the property. Some parts of Phase I, III, and IV fall in Rawalpindi. - Withholding Tax (WHT) or Advance Tax: This will be same as in other cities. 2% of the FBR value for filers, and 4% of the FBR value for non-filers.
Since DHA Islamabad-Rawalpindi is not located in a cantonment, you don’t have to pay any TIP as in the case of DHA Lahore.
These all the basic details about taxes and fees you have to pay for buying property in DHA Lahore, Karachi, or Islamabad. Do you have any questions about it? You can talk to us in the comments section. You can also head to the Zameen Forum for a detailed conversation.
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Thanks for the detailed information Farhad! This is really helpful.
One question: If a buyer is buying a house (not plot) with covered area of 5000 sqft in DHA Phase 6 Lahore, on the IT-5 form of FBR what will he declare as the value of the property? Will it just be the DC rate of that property or will that amount be different?
thanks for detail and what CVT tax on 100 to 200 sq yards?
thanks for detail and what CVT tax on 100 to 200 sq yards i karachi DHA?
My understanding is that no CVT will apply in this case but you will need to confirm this with the authorities.