RATIONLIZATION
OF
PROPERTY TAX
What is Property Tax Working out the ARV (Section 64)
64. Definition of “annual value” – For the purposes of this Chapter, “annual value” means- in the case of railway station, hotels, colleges, schools, factories and any other buildings which a Board decides to assess under this clause, one- twentieth of the sum obtained by adding the estimated present cost of erecting the building to the estimated value of the land appertaining thereto, and in the case of building of land not assessed under clause (a), the gross annual rent for which such building (exclusive of furniture or machinery therein) or such land is actually let or, where the building or land is not let or in the opinion of the Board is let for a sum less than its fair letting value, might reasonably be expected to let from year to tear:
Provided that, where the annual value of any building is by reason of exceptional circumstances, in the opinion of the Board, excessive if calculated in the aforesaid manner, the Board may fix the annual value at any less amount which appears to it to be just. FORMULA
TAX =[{(Total Area in Sq Yds + Covered Area in Sq Ft ) x Factor}/2]
ARV = TAX x 15/100
STEP – I
If self- occupied
By Serving-GS, tax = “TAX” – 60% of “TAX” By Retired-GS, tax = “TAX” – 100% of “TAX”
If rented tax = Actual Rent or Prevailing Market Rent
STEP - II
For YOC rebate Deduct
10% if > = 10 years or < = 15 years 15% if >15 years or < = 20 years 20% if >20 years or < = 25 years 25% if >25 years or < = 30 years 30% > = 30 years
DEVELOPED AREAS: CATEGORIES
CATEGORY - A FACTOR : 4 (changed from 7 to 4) D.H.A., Old Cav. Grd, Ext. Cav Grd, Main Cantt Residential Area
CATEGORY - B FACTOR : 3.5 (changed from 6 to 3.5) Super Town, Zaman Colony, Sheraz Villas, Eden Cottages, Butt Villas, New Super Town, New Iqbal Park, Yasmin Lane, Punjab Cooperative Society, Civil Defence, Sui Gas Colony, Shah Taj Colony, Rehman Vilas, Real Cottages, Larchs Colony
CATEGORY - C FACTOR : 3 (changed from 5.5 to 3) Butt Vilas, Ali View Park, Cantt View
CATEGORY - D FACTOR :2.5 (changed from 5 to 2.5) Mian Park, Korey, Punjab Small Industries Housing Scheme, Gulshan Park, Sultan Park
CATEGORIES EXTENDED AREA
“ X-A”
Qadri Colony, Farooq Colony, Iqbal Park, Al-Noor Town, Muhammadi Road, Firdous Park, Shoukat Town, Muhammad Pura Madina Colony, Peer Colony
SELF: ANNUAL RENTAL VALUE PER MARLA
Single Story Double Story Road upto 15 feet 700/- per marla 1000/- per marla
Road above 15 feet 900/- per marla 1200/- per marla
RENTED: ACTUAL RENT PER MONTH x 12
TAX: 15% of Annual Rental Value
Example
Property Property Detail Area Old Annual Tax as per Formula No. Tax E-13-15-H Road upto 15 feet Single Islam 495/- 1050/- Storey (10 Marla) Nagar “ X- B”
L.D.A Quarters, Nishat Colony, R.A.Bazar, Gulistan Colony, Bilal Town, Yasin Town, Gulbhar Colony, Ghousia Colony
SELF: ANNUAL RENTAL VALUE PER MARLA
Single Story Double Story Road upto 15 feet 500/- per marla 800/- per marla
Road above 15 feet 700/- per marla 1000/- per marla
RENTED: ACTUAL RENT PER MONTH x 12
TAX: 15% of Annual Rental Value
Example
Property Property Detail Area Old Annual Tax as per Formula No. Tax E-29 Road upto 15 feet Single Nishat 627/- 750/- Storey (10 Marla) Colony “ X- C”
Ghosia Colony(LDA), Maryam Colony, Kohar, Manawala,Buksheesh Pura, Charrar, Chung, Rehmat Pura, Keer Khurd, Aamar Sidhu, Model Colony
SELF: ANNUAL RENTAL VALUE PER MARLA
Single Story Double Story Road upto 15 feet 300/- per marla 500/- per marla
Road above 15 feet 400/- per marla 600/- per marla
RENTED: ACTUAL RENT PER MONTH x 12
TAX: 15% of Annual Rental Value
Example
Property Property Detail Area Old Annual Tax as per Formula No. Tax E-6 Road upto 15 feet Single Ghousia 99/- 270/- Storey (6 Marla) Colony