{"id":430,"date":"2020-04-02T12:05:33","date_gmt":"2020-04-02T12:05:33","guid":{"rendered":"https:\/\/sirmaya.com\/blog\/?p=430"},"modified":"2020-04-02T12:10:31","modified_gmt":"2020-04-02T12:10:31","slug":"property-tax-in-pakistan-2020","status":"publish","type":"post","link":"https:\/\/www.sirmaya.com\/blog\/property-tax-in-pakistan-2020\/","title":{"rendered":"Property Tax in Pakistan \u2013 2020"},"content":{"rendered":"
<\/span> 3,773<\/span> Views<\/span><\/div>\n

You call yourself a true citizen?\nLet\u2019s evaluate it a little bit seriously today!<\/p>\n\n\n\n

What part your individual self plays\nin economic, social and political domains of your country?
\nVery little?
\nNow add all these \u201cvery little\u201d and you get the importance right there!<\/p>\n\n\n\n

Give this blog a read and you will know exactly what has been missing from your \u2018responsible citizenship personal diary\u2019 with special reference to the real estate tax in Pakistan.<\/p>\n\n\n\n

<\/span>Property Tax<\/span><\/h2>\n\n\n\n

Property tax is a certain amount of money that is payable to the government by every land owner. It also includes sales tax that has to be paid while purchasing the property while maintenance is paid every year. Before getting into the details of all the official tax notices and property exemption we need to clarify which types of taxes exists in Pakistan for Tax payers.<\/p>\n\n\n\n

<\/span>Types of Taxes<\/span><\/h1>\n\n\n\n

For all those seeking to own a house, buy a house or transfer it may also look for the useful legal information has been introduced and is carry forward in the year 2020 property tax trends. There are four types of taxes:<\/p>\n\n\n\n

  • Capital Value\nTax (CVT)<\/strong><\/li><\/ul>\n\n\n\n

    As the name\nrefers, it is payable on the Capital Value of the asset you intend to acquire\npermanently. CVT is payable when you purchase a land. According to the Finance\nact of 2006, the amount applicable on the property as CVT is calculated at the\nrate of 2% of the total value of the property. However, the new budget proposed\nby the new tenure has resulted in abolition of DC rates. There will be 3% of\nthe stamp duty payable for the legal documents under the stamp act 1899 property\nalongside 2% of the CVT which now makes it 5% on an urban property.<\/p>\n\n\n\n

    Now you\nmust be wondering what type of property is eligible for CVT?
    \nProperty that is exchanged as a gift or as a part of intentionally transferring\nthe rights is covered under the CVT.<\/p>\n\n\n\n

    • Capital Gains\nTax (CGT)<\/strong><\/li><\/ul>\n\n\n\n

      Risk\navoider? File CGT right away!<\/p>\n\n\n\n

      CGT is a\ntype of tax that has to be paid by the seller at his intention of selling his\nproperty. This tax defines the legal percentage referred from the profit earned\non the sale of property. CGT is applicable on the property if it\u2019s being sold\nwithin the first three year of purchase (Pakistan Finance Act, 2017). Moreover,\nthe tax percentage may vary depending upon in which year the owner is selling\nthe property after purchase i.e., 10% during first year, 7.5% in the second year\nand 5% in the third year. <\/p>\n\n\n\n

      • Withholding\nTax<\/strong><\/li><\/ul>\n\n\n\n

        Then comes\nthe mix and match of CGT & CVT. Withholding tax is the amount that is paid\nby both buyer and seller when its sold. WHT is applicable only on the property\nwhose worth is more than PKR 4 million. <\/p>\n\n\n\n

        Moreover:<\/p>\n\n\n\n

        • If a buyer is a filer of income tax, he\/she has\nto pay 2% of WHT, if he is a non-filer than the tax applicable is 4%. <\/li>
        • If a seller is a tax-filer than the applicable\ntax is 1%, if he is a non-filer than the tax percentage is 25% in that case.<\/li>
        • Withholding tax is to be paid at the time of\ndeal while registering the sales deed.<\/li>
        • WHT is also referred as \u2018advance tax\u2019 and can\nbe adjusted into the tax liabilities of a homebuyer or against the CGT of the\nseller.<\/li><\/ul>\n\n\n\n

          <\/span>How to Pay your Property\nTax in Pakistan<\/span><\/h1>\n\n\n\n

          Till this\npoint you might be wondering why have you been so careless about the nitty-gritty\nof the most relevant aspects of your assets in Pakistan! <\/p>\n\n\n\n

          There are three\nways to pay your taxes. First, you need to identify the fact that every\nindividual province has its own tax collection department and you need to get in\ncontact with your respective city-wise department and pay your taxes. Second,\nTax can be paid through online bank challan system and third, you can generate\nonline property tax challan for payment within your time with convenience.<\/p>\n\n\n\n

          <\/span>Property Tax Exemption<\/span><\/h1>\n\n\n\n

          For all the\nhome owners or owners-to-be must find the information useful in order to follow\nlegalities more concerning with the applicable & non-applicable property\ntax in Pakistan. <\/p>\n\n\n\n

          Your property gets exemption from tax if: <\/p>\n\n\n\n

          • The constructed land area of residential\nproperty is less than 5 Marla other than the locality of category A.<\/li>
          • Property uncapable of commanding annual rent\nmore than PKR 4,320.<\/li>
          • Residential property commanding annual rent\nmore than PKR 6,480 is exempted form the tax only if the owner is residing in\nit.<\/li>
          • Property owned by an orphan o disabled & is\nworthy up to PKR 12,150 per annum.<\/li>
          • Property with government ownership.<\/li>
          • Religious buildings (e.g., Mosques etc.).<\/li>
          • Property being used publicly for e.g., public\nparks, schools, libraries etc.<\/li>
          • Properties generating profit for religious or\nwelfare purpose.<\/li><\/ul>\n\n\n\n

            <\/span>Tax Notices<\/span><\/h1>\n\n\n\n

            Government\nissues total four types of notices i.e., P.T \u2013 10, P.T \u2013 11, P.T \u2013 14 & P.T\n\u2013 13.<\/p>\n\n\n\n

            P.T \u2013 10:<\/strong><\/p>\n\n\n\n

            This notice\ncontains information regarding name, property number, tax amount for current\nfinancial year along with the last date of payment is mentioned. You can submit\nyour property tax in any branch of National Bank of Pakistan or State Bank of\nPakistan along with the filled challan. The challan consists of three portions.\nThe duplicate portion of the challan is sent to the E&T department through\ntreasury. On the other hand, the photocopied receipt can be sent directly to\nthe E&T department for more prompt procedure so any further notice can be\nsent to the assessee in no time.<\/p>\n\n\n\n

            P.T \u2013\n11: <\/strong><\/p>\n\n\n\n

            This comes\nwhen the tax payer has not paid the tax within the mentioned deadline according\nto the P.T -10 requirements and penalty is imposed almost equal in amount to\nthe actual payable tax. The assessee is given opportunity to explain his non-disposition\nby appearing before the concerned authority or present any representative.<\/p>\n\n\n\n

            P.T \u2013\n14:<\/strong><\/p>\n\n\n\n

            In case the\nproperty owner fails to deposit tax in time, tenant of that property is than\nasked to submit the rent in the Government Treasury until the liability remains\nopen. Referring to such a case tenants receive direct notice from the\ngovernment for direct rent deposition on Challan P.T \u2013 10.<\/p>\n\n\n\n

            P.T \u2013\n13:<\/strong><\/p>\n\n\n\n

            Upon receiving\ninformation regarding any change in the property description, use, ownership or\npossession, the concerning authority ETO\/AETO issues P.T \u2013 13 stating such\nchange. Person who is issued such a challan should get into this matter\nseriously and report within 14 days of the issuance referring to file an\nobjection in office of the concerned ETO. If no objection is received within\nthe time frame than the change is considered as confirmation.<\/p>\n\n\n\n

            Let\u2019s not\nforget what difference it makes by a single responsible devotion!<\/p>\n\n\n\n

            Pay Your\nTaxes in 2020 and make a difference we criticize about.<\/p>\n","protected":false},"excerpt":{"rendered":"

            3,773 Views You call yourself a true citizen? Let\u2019s evaluate it a little bit seriously today! What part your individual self plays in economic, social and political domains of your … <\/p>\n","protected":false},"author":2,"featured_media":427,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[16,6],"tags":[28,33,34],"yoast_head":"\nProperty Tax in Pakistan \u2013 2020 | Sirmaya Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sirmaya.com\/blog\/property-tax-in-pakistan-2020\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Property Tax in Pakistan \u2013 2020 | Sirmaya Blog\" \/>\n<meta property=\"og:description\" content=\"3,773 Views You call yourself a true citizen? 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