Property Tax Advice and Income Tax in Punjab, Pakistan

PROPERTY TAX ADVICE
AS ANNOUNCED BUDGET 2010 AND GORVERNMENT RELIEF OWNER OF RENTAL PRPOERTY. CAN ANYBODY PLEASE TELL ME ABOUT APPLICABILITY OF THIS PROVISION ON INDIVIDUAL AS I ALSO RENTED MY HOUSE IN ISLAMABAD 12000/PM BUT MARKET VALUE OF THE AREA IS 15000/PM. SHALL I PAY THE RENTAL PROPERTY TAX AS LAST TIME I FILLED THE INCOME TAX FARM AS NIL STATEMENT

Hussain Kaisrani replied on Monday, June 7, 2010 04:32 PM PST Tax department has some criteria through which it decides monthly rent of some property. The notices are sent on the address along with Chalan form payable to National Bank Ltd. In Lahore these notices are being received nowadays. I understand that property tax is not paid with income tax. You will be paying income tax on the income of rent but property tax is a different matter and it is paid through prescribed form.

Pardesee replied on Monday, June 7, 2010 04:48 PM PST Thanks Mr Hussain Kaisrani your value able feed back. Sir, I have rented house in Islamabad. To whome I can approach to get the latest information. I want to pay income tax on my rental property as I have rent out one portion 12000/ per month. Shall I will approach to Islmabad income tax office? As per my understanding my yearly income is not increasing 150000 which is exampted and in current budget I heard increase the 300000. In this case I am not applicable for income tax. Please give me adivse. Sorry I have very bad english but I hope u understand my problem

Hussain Kaisrani replied on Monday, June 7, 2010 07:04 PM PST Your English is much better than mine. Language is for communication and it this purpose it being fulfilled then nothing to worry about. You have not mentioned the size of plot on which your home is constructed. You are not supposed to contact income tax office for paying property tax. For this purpose you need to contact Excise and Taxation Department Rawalpindi/Islamabad. Its contact number is 9271926. If your plot size is about 5 Marla then forget every thing as it is exempted from property tax.

Pardesee replied on Monday, June 7, 2010 07:47 PM PST Thanks again about your prompt reply. My plot size is 20x40 and I am enquiring about the rental income tax property as I rented out my lower portion. Last year rs 150000/- was exampted to tax. I heard that in current budget government increase the limit from 150000/- to 300000/- as my rental income is 960000 per year. could you please advise me about it.

Hussain Kaisrani replied on Monday, June 7, 2010 09:23 PM PST Always welcome. Your home is exempted from property tax. This is the reason you had not received a notice in this regard. Now the matter under discussion is income tax from rent as well as from other sources. You will need to deposit tax (if any) with your annual return. Whether your income is exempted from tax or not, I could not say any thing about it as my knowledge and information is very limited in this regard. May be some other friend on this page will guide us.

Irfan Khattak replied on Monday, June 7, 2010 11:47 PM PST Dear Pardesee, You are right. In the recent budget announcement, incom ceiling upto 3 lacs is exempted from income tax. Previously it was 150000/-. If your total income including rent of the said house does not exceeds Rs. 300000/-, then there is no income tax to be paid by you. Regards

Pardesee replied on Tuesday, June 8, 2010 10:08 AM PST Thank you very much brother for your valuable feedback. I do agree with you (Irfan Khattakand think I will ba able to emphasize on it in my further steps….May Allah reward you all for your efforts and give you all reward in this world and Hereafter. “Ameen” Courtesy: Lahorerealestate.com