KARACHI – A sigh of relief for property owners in country’s most populated region Punjab where authorities announced tax relief on Properties valued up to Rs 5 Million.
A recent announcement made by Excise and Taxation Department said homes and residential plots valued at up to Rs50lac will be exempt from property tax. This decision aims to provide relief to property owners and was confirmed in a recent notification.
As per the new changes, future property tax assessments will be based on the district collector’s (DC) rate, ensuring consistency. Citizens were further reassured that no additional property tax payments would be required this year, per reports.
To pass on the relief, the department also introduced a new measure allowing taxpayers to pay only 25pc of their total property tax liability for the current fiscal year while a self-assessment system has been launched, allowing citizens to calculate their property tax independently, streamlining the tax process.
Officials said these measure will further simplify tax system and provide greater convenience to taxpayers, and will help department to enhance transparency.
Meanwhile, authorities are tightening regulations on property transactions, imposing penalties for deals conducted outside of banking channels. As per Income Tax Ordinance 2001, a 5pc penalty applies to property transactions exceeding Rs5million or assets over Rs 1 million when paid in cash or via non-banking methods
These new taxes aimed to end tax evasion and increase transparency in the real estate sector. Additionally, new tax rates have been introduced for property transactions, including different rates for filers and non-filers, as well as updated advance property tax and capital gains tax rates.
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