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Punjab Assembly finance bill and property tax

Punjab Assembly finance bill and property tax

Punjab assembly has passed the finance bill 2017. According to this bill all provincial taxes on purchase of property have been incorporated in stamp duty. So instead of paying the separate registry fee, stamp duty and capital value tax, buyer will just pay the stamp duty. Buyer has to pay 5% stamp duty for urban properties and 3% stamp duty for the registration of rural properties. Same ratio will be applied to the gifted properties. But for the urban property gifted in family (spouse, mother, father, son, daughter, grandmother or grandfather etc.) stamp duty will be 3%. Stamp duty will be issued Via E-stamping TICKET system. Rs. 500/- value stamp duty will be required for the registration of documents showing the value of up to Rs 5 LAC and Rs. 1,000/- for the registration of of document showing the value more than Rs 5 LAC.

New taxes on purchase / registry of property are;

Buyer – Filer (Urban property)

Stamp Duty = 5% as per DC Rate

Withholding Tax = 2% as per FBR Rate

Buyer – Filer (Rural property)

Stamp Duty = 3% as per DC Rate

Withholding Tax = 2% as per FBR Rate

Buyer – Non Filer (Urban property)

Stamp Duty = 5% as per DC Rate

Withholding Tax = 4% as per FBR Rate

Buyer – Non Filer (Rural property)

Stamp Duty = 3% as per DC Rate

Withholding Tax = 4% as per FBR Rate

Gifted property (not to relative)

For gifted properties stamp duty will be 5% for urban and 3% for rural areas.

Gifted property (spouse, mother, father, son, daughter, grandmother or grandfather etc.)

Stamp duty for urban property gifted within family members will be 3%.

(The above mentioned rates are only for Punjab. For other provinces please consult the registration authorities).

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Pakistan property tax 2017

(8) Comments

    • Babar Hussain
      Yes, it will solve the lot of confusion
      First people were worried about stamp duty, registration fee and capital value tax
      Now they have to just pay 5% STAMP DUTY

      Reply
  1. Kenobi

    on   said 

    With this bill and recent balloting of DHA Multan, what you expect is the future of this new housing society under the umbrella of DHA banner. Is it good time to invest?
    I am getting following rumors.
    10 Marla plot file at 7 lac own (price 3.5 million in 12 instalments)
    1 kanal plot file at 11 lac own (price 6.8 million in 12 instalments)

    Reply
    • Kenobi
      Yes its true
      Plot files in DHA Multan are selling on own
      But no a good time to invest
      Prices will be stagnant or will fall due to high taxes
      Even FBR is increasing the property valuation rate by 30%
      People bought pentasquare DHA Lahore apartments at 20 LAC OWN
      So Due to market situation DHA has not launched rest of 75% apartments
      What is the use to buy expensive plots when market is stagnant

      Reply
      • Kenobi

        on   said 

        So you are saying prices of own will further drop?
        In last one week, the own has dropped on 10 Marla from 1 million to 7 lac so it will further drop for sure but what should be the rate of “own” at which one should start negotiations …

        Reply
  2. Usman Mehr

    on   said 

    Its great initiative by Punjab Government.
    This will solve all confusion as people have to pay only 5% stamp duty.

    Reply
    • Usman Mehr
      Yes
      Since last budget 2016-17, there was lot of confusion about Stamp duty, capital value tax and registration fee. Now all are included in stamp duty. So provincial government will just collect 5% stamp duty for registry in urban areas and 3% in rural areas.

      Reply

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