Taxation is a complex matter and requires thorough knowledge from property owners. This includes not only tax rates, but also information about the tax administrator and where and when the tax is to be deposited.
Pakistan’s smartest real estate portal takes a look at the Punjab Government Property Tax Online Calculator.
Taxation in Punjab is done under the Excise, Taxes and Narcotics Department.
The department is responsible for the following:
• Collection of land taxes and fees
• Collection of federal fees
• Motor vehicle registration
• Dealer vehicle registration system for dealers
• Dealer vehicle registration system for the customer
• Auction of attractive license plates
How to use a property tax calculator
The steps to use the online property tax calculator are given below:
• Open the “Wealth Tax Calculator” on the website of the Excise, Taxation and Narcotics Department.
• You will need to check the category of your property. To do this, click on the “Find your category” button.
• A new window will open and you will be prompted to select a district.
• After selecting a district, a list of categories (related to the locality) opens on a new tab.
• Now that you know your property category, you can go back to the calculator.
Completing the “Tenant Information” section.
• Start by selecting the region of your property.
• Enter the number of property parts.
• Select a building type from the drop-down menu.
• Enter the covered area of ​​the plot either in square feet, marla, square yard, Kanal or acre.
• Specify whether the property is leased or owner-occupied.
• Click “Add” to go to the next section.
Completing the “Information Required to Calculate GARV” section.
• Start here by adding up the total area of ​​the plot.
• Enter the year the property was built and select the property category.
• Finally, enter the location of the property and press “Calculate Tax”.
• The property tax will be displayed in a pop-up window.
How to calculate tax for luxury houses
The steps to calculate tax for luxury houses in Punjab are given below:
• Open the “Wealth Tax Calculator” on the website of the Excise, Taxation and Narcotics Department.
• Select “Luxury House Tax” from the top row.
• A new window will open where you will calculate the tax.
• You will have to select the district, total area of ​​land (in Kanal, marla and sq ft) and total sq ft of total area covered.
• Click the “Calculate Tax” button below to display the calculated tax.
Frequently Asked Questions about Property Tax in Punjab

What is a PT-1 Record?
PT-1 is a register of records and is maintained by the tax office. This register records the details, ownership, description, possession, use, annual rental value and gross annual rental value of the property. A change in any of these details must be recorded in the PT-1.

How do I request a PT-1 record?
To obtain a PT-1 record, the property owner must apply along with the following:
• Court fee duly credited to the petition
• Copy of applicant’s CNIC
• Proof of payment of real estate tax up to date

How is the property tax rate calculated?
Under the Punjab Property Tax Act, 1958, property tax is levied on the annual value of buildings and land situated in a particular category. The tax is levied at the rate of 5 percent of the annual value.

What is the tax assessment procedure in Punjab?
When determining the tax, it is based on the nature of the land and the type of building. When assessing, the tax authorities take into account the location of the property, the purpose for which the property is used, i.e. for commercial or residential purposes, and whether the property is used by the owners themselves or is rented out.

When is property tax imposed?
Property tax is due each year by September 30 with a 5% tax discount for the current fiscal year. If the owner is served with a summons, he is obliged to file the tax at the state bank within 30 days of receiving the summons.
It is important to note that it is not necessary to deposit the tax in cash but the property owners can submit the tax by check along with the challan form in favor of the Excise and Revenue Officer of the concerned district.

What is a property tax rebate and surcharge?
A discount of 5 percent of the total amount of the annual tax is allowed if the property owner pays the flat amount of the annual tax by September 30.
If the owner does not pay the tax. He is obliged to pay a surcharge of one percent of the gross tax due.

Who is exempt from paying property tax in Punjab?
The tax is exempt if any of the following cases occur:
• Residential property less than 5 marlas in any category other than A category.
• Any property not earning an annual rental income of more than Rs. 4320.
• A house which the owner does not occupy for his residence and does not pay an annual rent of more than Rs. 6480.
• Further, building owned by widows, minors, orphans and/or disabled persons with tax liability up to Rs. 12,150 per year is exempt.
• In addition, a residential house of one kanal area occupied by an employed person/retired person of Federal or Provincial Government is exempted.
• Further, buildings owned by the government or local authorities such as a corporation, municipality or town committee, along with mosques and other religious buildings, are exempt from the tax.
• In addition, land used as public parks, playgrounds, schools, houses, hostels and libraries are exempt from taxes.
• The rent of which is given to religious or prescribed public charitable institutions is also exempt from tax.

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