Property Tax

Property tax

Property Tax: Apply for PT-1 Record  

• Application from a registered owner of property in plain paper court fee duly affixed
• Copy of CNIC of the applicant
• Proof of payment of Property Tax up-to-date

Rate of Tax

Under the provisions of the Act, the property tax is levied on the annual value of buildings and land located in the rating area.

It is levied at the rate of 5% of annual value at which the property may be let out from year to year basis

Procedure for Assessment       

Assessment of the properties is based primarily on the nature of occupation and the type of building. Locality wise yardsticks for commercial and residential, self or rented as the case may be properties have been prescribed.

Annual value the properties is calculated through these yardsticks. On the basis of annual value of the property unit, Property Tax is charged on the rates mentioned above.

Time and Mode   

• The Property Tax may be deposited on or before the 30th day of September with 5% rebate of tax for the current financial year
• Time allowed for payment is 30 days from the date of serving of Demand Notice accompanied with the Challan Form
• The tax is deposited into the Treasury or State Bank or in the specified branches of National Bank of Pakistan
• Payment can be made through a cheque (accompanied by Challan Form) drawn on a scheduled bank in favour of the Excise & Taxation Officer of the District concerned

Rebate and Surcharge   

• A rebate equal to 5 % of the amount of annual tax for financial year is allowed if the amount of annual tax paid in lump sum on or before the 30th September of the financial year
• A late payment surcharge at the rate of one per cent of the gross payable tax shall stand imposed on the first day of every month of delay if the tax payable for any year is not paid by 30th day of September of the said year

Exemptions

• Residential houses constructed on a land area less than 5 Marla other than locality of category “A”
• The Property not capable of commanding annual rent exceeding PKR. 4320/-
• A single house not commanding annual rent exceeding PKR. 6480/- if occupied by the owner for his residence
• The buildings owned by widows, minor orphan and/or disabled person tax liability of which is up to PKR.12150/- per annum are exempted
• One residential house up to one Kanal owned and occupied by a Federal or Provincial Retired Government servant is exempted
• Those buildings owned by Government or a Local Authority such as a Corporation, Municipality or town committee
• Mosques and other religious buildings
• Buildings and Lands used as public parks and playgrounds, schools, boarding, houses, hostels, libraries, and hospitals
• Properties the rents of which are devoted exclusively to religious or prescribed public charitable institutions

Property Tax Notices    

P.T – 10

It is a challan upon which name of assesses his property number amount of tax for current financial year arrears (if any) and last date of payment is mentioned.

Upon receipt of this challan the assessee should deposit tax before last date mentioned in any branch of National Bank of Pakistan or State Bank of Pakistan where provincial receipts are received.

Challan consists of three portions. The duplicate portion of this challan is sent to the E&T department through treasury where amount deposited is entered in the concerned registered.

It is desirable if photo copy of receipt is directly sent of E&T office so that proper entry is recorded in the relevant record in time so that no further notice is sent to the assessee.

P.T – 11

When the assesse does not pay the tax in time specified in PT-10 a penalty equal to the amount of tax can be imposed upon him. Through PT-11 notice, the assessee is given opportunity to satisfy that non deposition of tax in time was not willful.

On receipt of this notice, that assessee should appear personally or through some representative, before the concerned authority and inform the reasons for non-depositions so that penalty may not be imposed upon him.

P.T – 14

Where the owner of a property tax does not pay property tax in time, the tenant of the property may be made bound to deposit the rent in Government Treasury until tax liability is cleared.

For this Purpose Notice PT-14 is issued to the tenants who should deposit rent in Government Treasury on Challan PT-10.

P.T – 13

Whenever the Assessing Authority ETO/AETO gets information about any change in description, use, possession, or ownership of any property unit, PT-13 is issued stating such change, proposed assessment and tax.

The person who is served with this notice should file an objection in the office of concerned ETO within 14 days. If no objection is received within 14 days proposed change is confirmed.

Land Revenue Act 1967

Notice under section 81 of Land Revenue Act 1967 is stated as below:

Whenever an assessee does not pay in time, the ETO with delegated powers of Assistant Collector Grade – I under Punjab Land Revenue Act, 1967 may issue a demand notice under Section 81 of the Act ibid.

On receipt of this notice the assessee should immediately contact Excise & Taxation Officer because next step will be warrants of arrest to the defaulter.

Copy of P.T-1

The P.T.1 register is the basic documents in property tax record. In this register the particulars, descriptions, ownership, possessions, use, gross annual rental value, and the annual rental value of the properties are mentioned.

Any changes in the property, ownership are incorporated in this register. Any person filing an appeal or revision is required to attach copy of PT-1 along with the appeal or revision.

This copy can be obtained on an application written on a plain paper bearing a court fee stamp of PKR.20/-

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