Property owners must have a solid understanding of taxes because they are a complicated subject. This covers not only the tax rates but also details on the taxing bodies, as well as the location and timing of the tax deposit.
Property owners must have a solid understanding of taxes because they are a complicated subject. This covers not only the tax rates but also details on the taxing bodies, as well as the location and timing of the tax deposit.
Taxes in Punjab
The Excise, Taxation & Narcotic Control Department is in charge of tax administration in Punjab.
The department is in charge of these things:
- Income Tax and Fee Collection in the Province
- Federal Fees Collection
- Registration of Motor Vehicles
- Dealer Vehicle Registration System for Dealers
- Dealer Vehicle Registration System for Customer
- Auctions of Attractive Registration Marks
How to Use the Property Tax Calculator
Following are instructions on how to use the online property tax calculator:
- Visit the Excise, Taxation & Narcotics Control Department website and click "Property Tax Calculator."
- You must confirm the property's categorization. To do that, select "Find Your Category" from the menu.
- It will open a new window where you must choose your district.
- A list of categories (according to location) will appear once you choose the district and open in a new tab.
- You can return to the calculator now that you are aware of the property's categorization.
The "Information Required for Calculation of GARV" section must be completed.
The "Information Required for Calculation of GARV" section must be completed.
- Start by calculating the overall area of the land in this case.
- Select the property's category and enter the property's construction year.
- Finally, enter the property's address and click "Calculate Tax."
- In a pop-up window, the property tax will be shown.
Section "Occupier's Information" completion
- Choose the area of your property first.
- Give an exact count of the property's parts.
- From the drop-down menu, choose the type of building.
- Select the unit of measurement for the covered area of the property: square feet, marla, square yard, kanal, or acre.
- Indicate if the home is being rented out or is being used by the owner.
- To move on to the next section, click "Add."
How to Calculate Taxes for Expensive Homes
Following are the steps for calculating the Punjabi luxury home tax:
- Visit the Excise, Taxation & Narcotics Control Department website and click "Property Tax Calculator."
- The top row should have "Luxury House Tax" selected.
- The tax calculation window will open in a separate tab.
- The district, total land area (in kanals, marlas, and square feet), and total square footage of the total covered area must be chosen.
- You may see the calculated tax by clicking the "Calculate Tax" button down below.
Procedure of Property Tax;
Request a PT-1 Record
- Application on plain paper from a registered property owner with the appropriate court fee attached
- A copy of the applicant's CNIC
- Evidence of current property tax payment
Tax Rates
According to the Act's requirements, the annual value of the land and structures in the rating area determines how much property tax is assessed. The fee is 5% of the annual value at which the property may be rented out on a yearly basis.
Method for Assessment
The type of building and the nature of the occupation are the main factors used to assess the properties. Locality-specific criteria for commercial and residential properties, whether owned outright or rented, have been established. These metrics are used to compute the annual value of the properties. Property Tax is assessed based on the annual valuation of the individual property unit at the aforementioned rates.
Time and Mode
- The Property Tax may be deposited with a 5% tax rebate for the current fiscal year on or before the 30th day of September.
- 30 days are allotted for payment after the Demand Notice and Challan Form have been served.
- The tax is deposited with the Treasury, the State Bank, or one of the National Bank of Pakistan's designated branches.
- Payment may be done by check drawn on a designated bank in favor of the district's excise and tax officer (followed by a challan form).
Discount and Surcharge
If the amount of annual tax is paid in one lump sum on or before the financial year's 30th September, a rebate equal to 5% of that amount is permitted.
If the tax due for any year is not paid by the 30th day of September of that year, a late payment surcharge of 1% of the gross payable tax will be applied on the first day of each subsequent month.
Exemptions
- Other than localities of category "A," residential buildings developed on land with a minimum 5 Marla
- The property not able to seek annual rents higher than PKR 4320.
- A single home that, if used by the owner as his residence, does not fetch yearly rent greater than PKR 6480
- The structures held by widows, minor orphans, and/or people with disabilities are free from taxation up to PKR.12150 every year.
- An exception applies to one residential building up to one kanal that is owned and occupied by a Federal or Provincial Retired Government employee.
- Those structures owned by the government or a local authority, like a corporation, municipality, or town committee
- Mosques and other places of worship
- Public playgrounds and parks, hospitals, libraries, boarding homes, schools, and other facilities
- properties whose rentals are only used to support religious or other public charities as specified
