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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

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