Property Tax in Pakistan: Pay Without Hassle

• Property assessment is determined by the type of building and its use (commercial or residential).
• Local criteria are set for properties based on whether they are self-occupied or rented.
• These locality-based benchmarks are used to calculate the annual value of the property.
• Property tax is charged based on the calculated annual value of the property.
• The tax rates applied depend on the determined annual value.

• Property Tax can be paid by September 30th to receive a 5% rebate on the tax amount for the current financial year.
• After receiving the Demand Notice, taxpayers are given 30 days to make the payment using the provided Challan Form.
• Payments are accepted at the Treasury, State Bank, or specified branches of the National Bank of Pakistan.
• Cheques can also be used for payment, accompanied by the Challan Form, and should be made out in favor of the Excise & Taxation Officer of the respective district.

• If the entire tax liability is paid in one lump payment by September 30 of the fiscal year, a 5% rebate on the annual tax is given.
• Every month following the deadline for late payments of September 30th, there is an additional 1% fee on the gross payable tax. The surcharge keeps adding up on the first of every month after that until the tax is paid in full.

• Public spaces, such as parks, playgrounds, schools, hospitals, libraries, and hostels, are exempt from property tax.
• Widows, orphans, and individuals with disabilities are exempt if their property tax dues do not surpass PKR 12,150/- per year.
• Properties used exclusively for religious purposes or belonging to public charitable institutions are exempt.
• Federal or Provincial government retirees who own and reside in one residential house up to 1 Kanal receive tax exemption.
• Residential houses constructed on land less than 5 Marla, except in category “A” localities, qualify for tax exemption.
• Properties with an annual rent lower than PKR 4,320/- are exempt.
• A house occupied by the owner with a rent not exceeding PKR 6,480/- annually is exempt.
• Buildings owned by the government or local authorities, such as corporations or municipalities, are exempt.
• Mosques and other places of worship are not subject to property tax.

P.T – 10 Notice:

• This notice acts as a challan containing the assessee’s name, property number, current financial year’s tax amount, any arrears, and the last payment date.
• Upon receipt, the assessee is required to deposit the tax by the due date at designated branches of the National Bank or State Bank of Pakistan.
• The challan has three parts: one is sent to the Excise and Taxation (E&T) department, while the assessee should submit a photocopy of the receipt to ensure proper recordkeeping.

P.T – 11 Notice:

• If the tax is not paid on time as specified in the P.T – 10 notice, a penalty equal to the unpaid tax may be imposed.
• The P.T – 11 notice provides the assessee an opportunity to explain the reasons for the delayed payment before any penalty is enforced. This can be done in person or through a representative.

P.T – 14 Notice:

• If the property owner fails to pay the property tax, this notice is issued to the tenant, obligating them to deposit the rent in the Government Treasury until the outstanding tax is settled.
• The tenant deposits rent using the P.T – 10 challan until the tax liability is cleared.

P.T – 13 Notice:

• When the Assessing Authority becomes aware of changes to a property’s description, use, possession, or ownership, they issue a P.T – 13 notice.
• The notice includes the details of the change and any reassessed tax. The recipient has 14 days to file an objection with the E&T department; otherwise, the changes become final.