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).