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Taxes to be paid by buyer and seller

Taxes to be paid by buyer and seller

All property taxes are as per finance bill 2017.

Taxes to be paid by the buyer
Buyer – Filer (Urban property)

Stamp Duty = 5% as per DC Rate

Withholding Tax = 2% as per FBR Rate

Buyer – Filer (Rural property)

Stamp Duty = 3% as per DC Rate

Withholding Tax = 2% as per FBR Rate

Buyer – Non Filer (Urban property)

Stamp Duty = 5% as per DC Rate

Withholding Tax = 4% as per FBR Rate

Buyer – Non Filer (Rural property)

Stamp Duty = 3% as per DC Rate

Withholding Tax = 4% as per FBR Rate

Gifted property (not to relatives)

For gifted properties which are not gifted within families, stamp duty will be 5% for urban and 3% for rural areas.

Gifted property (spouse, mother, father, son, daughter, grandmother or grandfather etc.)

Stamp duty for urban property gifted within family members will be 3%.

Taxes to be paid by the seller
Seller – Filer

Withholding Tax – WHT = 1% as per FBR Rate

Capital Gain Tax – CGT (as per FBR Rate)

10% CGT on sale of property within 1 year of purchase

7.5% CGT on sale of property within 2 year of purchase

5% CGT on sale of property within 3 year of purchase

0% CGT on sale of property after 3 years of holding period

Seller – Non Filer

Withholding Tax – WHT = 2% as per FBR Rate

Capital Gain Tax – CGT (as per FBR Rate)

10% CGT on sale of property within 1 year of purchase

7.5% CGT on sale of property within 2 year of purchase

5% CGT on sale of property within 3 year of purchase

0% CGT on sale of property after 3 years of holding period

NOTE:

Additional 3% WEALTH TAX was introduced in property tax amnesty scheme, November/December 2016. According to this scheme people (both buyer & seller) will have to pay 3% tax on the difference of FBR Rate and DC Rate if they cannot provide the source of income.

Recommended:
Pakistan Tax Amnesty Scheme 2018

206 Comments

  1. M. Naeem Khalid

    on   said 

    Is there any difference of taxes for transfer of a plot and a constructed house?
    How much taxes will have to be paid for transfer of 240 square yard (8 marlas) double storey house in Faisalabad. I am a tax filer.

    Reply
  2. Zubair

    on   said 

    I want to buy a plot in Gulberg Residencia islamabad. Market price is 38lakh and DC rates are 15 lakh.. I am TAX FILER
    1. How much tax should I pay under each head?
    2. Will the tax be paid as per DC rate or market price?
    3. Can government buy the plot by force from me by paying 100 percent of the value? If yes, how to avoid this and declare the actual value?

    Reply
  3. Rehan Rana

    on   said 

    Assalamualaikum sir
    i have bought a 2 marla house in a local society in lahore
    how much will it cost for all taxes of government for registry

    Reply
  4. Zeeshan Manzoor

    on   said 

    A.O.A.. Sir . i found your information quite useful but still i am unable to calculate total transfer dues of a house i have just bought. i bought a 10 marla house in Wapda Town Lahore at the cost of 2 crores and 20 lacs, please tell me total transfer fee according to this society. As Govt. is paying for our house, still we have to pay WHT?

    Reply
    • Zeeshan Manzoor
      You have to pay 5% Stamp Duty as per DC Rate for registry of property.
      2% Withholding Tax as per FBR Rate as you are filer.
      1.5% TMA+ miscellaneous taxes as per DC Rate.
      so 8.5% taxes.
      So you have to pay 8-10 LAC in taxes.
      Complete detail can be obtained from LDA office that is near to your home.

      Reply
  5. Ali Awan

    on   said 

    AOA Sir, Recently my fanily has bought a house in Askari 2 Sialkot Cantt. It is a 10 marla house and cost of upto 1,70,00,000 was paid for the house at start of 2017. How much amount will be spent at the time of registery because it isnt registered yet. Kindly tell me all the taxes liable and how to calculate the final amount.
    Thanks in anticipation!

    Reply
    • Ali Awan
      You have to pay 5% Stamp Duty as per DC Rate for registry of property.
      2% Withholding Tax as per FBR Rate if filer or 4% Withholding if non filer.
      1.5% TMA tax as per DC Rate.
      so 8.5% taxes if filer or 10.5% taxes if non filer. So roughly you have to pay 8-11 LAC in taxes.
      Complete detail can be found in Sialkot Cantonment Board.

      Reply
  6. Zulfiqar

    on   said 

    Sir,

    I have bought a plot at Rs. 39,00,000 actual rate
    whereas as per DC rates its value is 16,50,000

    Actually value 39,00,000 is mentioned in the sale deed so do we have to pay the 2% CVT at actual value or at DC value.

    Thanks

    Reply
  7. Haider

    on   said 

    Salam

    I came across your blog by chance. I appreciate your advice (please also let me know if you can give some personalized advice for which I will be happy to pay for that consulting).

    Our family has some general questions regarding settlement of 2 different inherited properties by 2 different surrender deed within the Lahore Cantonment Board (Main Lahore Cantt area and not DHA). Both surrender deeds were executed at different times but within the same tax year. Surrender deeds are being used (and not gift deeds) because many of the involved persons are related but not blood relations. The properties will also undergo subdivision. Our family are tax filers, other involved families are not. Although our filing for previous years finished ofcourse, but I would like to know if we handled our adjustable taxes properly or not. Incase any new such surrender deed has to be made again for subdivision, we would like to know what we should do properly for 2019.
    1) The TIP tax will be payable by the people who are acquiring the property or giving up the property?
    2) Is the TIP tax adjustable in the income tax?
    3) Is this TIP tax like the 236-K tax on the buying or selling of property?
    4) If the TIP tax for surrender deeds was paid in tax year 2017 but actual subdivision will happen in tax year 2019 (after 1st July 2018), then are any other taxes (adjustable or non-adjustable) to be levied?
    5) What are all the total possible taxes to expect in this kind of procedure?
    6) Do all the families have to pay taxes together or can we also pay our taxes separately so we can show our share of taxes in our filing?
    7) After July 1st, 2018, the taxes will be at market rate?
    8) What would be the least cumbersome way to handle these kind of procedures?

    I wonder if you can provide personalized calculations for income tax purposes. Also we would like some advice on the procedures. As mentioned above, we can pay for your assistance.

    Reply
  8. Aoa sir
    I want to know that cvt and gain tax is imposed on 2 marla 3 sq ft. Within one year.
    If it is applicable and has to be paid than how much I have to pay 2 marla 3 square ft.
    Regards you sir thank you

    Reply
    • Naeem
      You have sold you 2 Marla plot within 1 year of purchase.
      As property price is less than 40 LAC so no WITHHOLDING TAX.
      You have to just pay Capital Gain Tax which is profit.
      So you will pay just 10% tax on profit.
      For example you purchasing price was 15 lac and you sold plot for 20 lac so you profit is 5 LAC.
      So on profit you have to pay 10% which will be Rs. 50,000.

      Reply
  9. Dr. Kiran

    on   said 

    Hello sir ..kindly guide me that my father has less than 5 marla plot in rural area. Does he has to pay property tax for this and if yes.. does it requires any lawyer to do so or the document of the property we need to provide for the tax to be paid for the first time .. and kindly guide me the procedure for it.
    Can the tax be paid on the tax number of income tax .. or does the property tax have seperate tax number issued on which property tax is submitted..
    I shall be thankful for your guidance

    Reply
    • Dr. Kiran
      Village properties are cheaper in price so no gain tax plus withholding tax.
      Just the small taxes on transfer of property.
      Don’t worry about tax number as now your ID card is also your tax number.
      Don’t need the lawyer.
      Relevant registry department will guide you about all taxes.

      Reply
  10. Raja amanat

    on   said 

    Hello sir . I bought a house 3.5 marla in LDA quater area lahore the house price is 40 lakh and i want to transfer this house on my name in LDA and can you tell me that how much CVT and other taxes will be charge

    Reply
  11. hamza mir

    on   said 

    Dear sir, i am filer and bought a plot in aug 2018 of ten marla in one society of lahore dc value of plot is 17 lac where as i paid 56 lac at market For plot. I paid 5 percent stamp duty at dc rate i. e 85000 and tma tax 1 percent i. e 17000 at dc rate. I made full payment to seller through payorder of amount 55 lac and paid one lac as token. Please guide what value of property i have to show in my income tax return as i made payment of taxes at dc rate and payment made to seller in full amount.

    Reply
  12. Omer

    on   said 

    Hi Mr. Malik,

    I have applied for NOC of my plot in Sabzazar, Lahore. I purchased that plot in 2014. Now, LDA is asking to pay TMA tax. The amount is 24000 PKR.

    I need to know that was TMA tax imposed in 2014? if so then how this amount is calculated?

    Really appreciate your efforts to guide us. Thanks

    Reply
  13. Muhammad Saqib khan

    on   said 

    Dear Anwar,

    I need to transfer a house in rawalpindi cantt that was gifted as a settlement for inherited property. How much would be the transfer fees and other taxes that i will have to pay.

    Will the taxes and other fees be paid according to market value or the dc rates.

    Reply
    • Muhammad Saqib Khan
      According to the budget 2018-19 all taxes will be paid as per the market rate.
      TAXES ARE AS;
      1% advance tax on real estate transactions. This will be adjusted in annual tax returns.
      Federal government will charge just 1% tax from 1 July 2018.
      Provincial governments are also requested to bring down taxes to 1% from 1 July 2018.
      FBR & DC Rates will be abolished from 1 July 2018.
      Non filers can’t buy property of worth 5 Million PKR or more.
      FBR to prescribe one page E-return for Pakistani Expatriates to buy property in Pakistan.
      FBR will be allowed to buy back property from 1 July 2018 after paying 100-50% more prices declared at the time of registry.

      You should visit Rawalpindi Cantt Office to get the further details.

      Reply
  14. Abdul

    on   said 

    Dear Sir,

    I am just about to sell my plot worth 12 lacs. I am being told that I will have to pay withholding tax but I have read that no withholding tax is paid by the seller on selling property less than 40 lacs. What should I do now?

    Also, please tell me if I have pay CGT on selling my 5-marla plot within 3 years of purchase?

    Thanks

    Reply
  15. Y M

    on   said 

    Salam,

    Who is supposed to pay TIP tax if a house is sold situated in the Cantonment Board Rawalpindi – Seller or Buyer?

    Reply
  16. irfan ullah khan

    on   said 

    i have purchased house in PWD housing society which worth is 1 cror and size is 30*70, so what total taxes i have to pay as i am already filer.

    Reply
  17. Hashim

    on   said 

    Aoa.I have recently sold my agricultural land situated in Chiniot.Only biana has been paid to me till now and final payment will be by the end of July-2018.I would like to know how many of different taxes and how much of them are applicable on me as a seller.i have been owner of this land for more than 20 years(some of this sold land is inherited and some i purchased more than a decade ago).plz let me know what are tax liabilities on me as a seller and also on buyer.Moreover why do buyers want to overstate the price of land in land records, what benefits it brings to buyer and what are its implications for seller if buyer of agri land wants to overstate the deal price(as is the case with buyer of my property).Please note that im a non filer and also advise me if becoming filer is better in my situation to reduce tax liability.

    Regards
    Hashim.

    Reply
  18. Ahmad Hassan

    on   said 

    i want buy 54,80000 tottle urban value property. how much tottle tax pay for buy this value property.plz tell me FBR Tax.Stamp duty. MCP tax etc.

    Reply
    • Currently as a buyer you have to pay approximately 10% according to FBR or DC Rates.
      But taxes will be reduced from 1 July 2018 according to fiance bill / budget 2018-19.
      From 1 July as a buyer you have to pay just 2-3% tax according tot he value you register or market value.
      Therefore wait for the new tax regime to be fully installed.

      Reply
      • Ahmad Hassan

        on   said 

        I am active Filler plz tell me on 1st jully tottle taxes will apply on land registration.DC fbr land Value is 54,80000

        Reply
        • Ahmad Hassan
          From 1 July 2018 all taxes will be paid as per market price of property. For example property price is 1 crore. So taxes will be 3 lac for registry. But 1% advance tax will be adjusted in tax returns.

          Reply
  19. Sami

    on   said 

    Aoa.

    Please explain who will collect CVT & Stamp duty @ 5%? For example, is it either collected by Transfer office of Housing Society or The Revenue Department will issue Tax Challan for CVT?

    Also, please explain the Property Tax levied by Provincial Governments on a yearly basis?

    Reply
    • Sami
      Stamp Duty is collected by provincial government. When you buy property in a residential area which is not society so all taxes are paid directly by buyer.
      But when property is bought in a housing society, then housing society pays tax on behalf of buyer. Housing society sends receipt to the buyer that pay the taxes to society as society has to pay taxes on buyer’s behalf.

      Reply
  20. adeel ahmed

    on   said 

    Assalamu’alaikum I am buying a 5 marla plot in chakwal city for 705000 rs tell me about transferring process and total amount separately which I have to pay on transferring on my name. Thanx

    Reply
    • Adeel Ahmed
      Stamp duty 5%
      Withholding tax = 2% for filer 4% for non filer
      TMA Tax + mis charges = 1.5%
      TMA = Town Municipal Authority
      Recently government has issued orders that all transactions or developments will be approved only after the approval of TMA
      So according to the current laws you have to pay approximately 65-70,000 in taxes to register plot on your name.
      Wait till Friday as there are news that government might relax the taxes in budget 2018-19.

      Reply
  21. RAHEEL AHMED

    on   said 

    Respected sir
    I am in a deal process of agriculture land.
    I wish to ask what are different tax/charges which I have to pay as a buyer and what is percentage.
    Is there any official page where this information can be found as a proof for smooth process.
    Thank you

    Reply
  22. Muhammad Khan

    on   said 

    Dear ,
    My Registry is completed of Land tranfer, Even we took the original registry but in the Land record Portal,Still old owner name is appearing,after how many days,my name will be updated.
    Thanks

    Reply
  23. Aurangzeb

    on   said 

    My father is retired from govt sefvice. He purchased a plot file on my name about ten years ago and he paid its installments for three years.
    Initially, I didnt mentioned that property file in my asssets in return. I am filing return for last 7 years.
    2 years ago i mentioned that file and its original value that was paid in my return and shown that as recent purchase as per advise from consultant and adjusted its amount from expenditures.
    Now i want to gift taht proerty file back to my father so that it can be included in his overall property for inheritance purposes. Can i gift that property and show in return as “gifted to father”. How much will be charges involved in gift?

    Reply
  24. Muhammad

    on   said 

    Dear Sir,
    1- What is “Intikal” in property transfer.
    2- After getting the original registry from the sub-registrar office ,what is the next
    step to complete the property transfer.
    3- What is the roll of patwari in the current property transfer system.
    Thanks,

    Reply
    • Muhammad
      Here the few term about title transfer in Pakistan. Patwari is the person who completes INTIKAL
      REGISTRY
      Registry is written agreement between buyer and seller for sale & purchase of a property
      INTIQAL
      Written agreement is shown to Patwari and he note down it in his register. Intiqal is the permanent transfer of property from old owner to new owner or buyer.
      FARD
      You can anytime ask patwari to give you fard of your property. fard is proof that the property is on your name. when you request any bank for loan, they ask for fard to make sure if property is on your name or not. Fard is also required for map approval from development authority.
      HIBBA
      To give property as a gift.

      Reply
      • Muhammad

        on   said 

        Brother Malik Anwar Ul Islam,
        In the Current System, Ferd is taken from the Land record office and Intikal is also completed in the Land Record Office but i did not yet understand the rule of the Patwari because as per your description ,this was previous rule,now his power are minimized.

        Reply
  25. Muhammad Khalid Khan

    on   said 

    Dear Sir, I need to sale 1 kanal plot in lake city and 8 marla plot in bahria town.
    1. How much I have to pay and how much buyer has to pay.
    2. What are the legal requirements to sale and purchase a plot.
    3. Do i need to register in FBR to sale & purchase a plot? What if I’m already registered in FBR for my company taxation. Is it sufficient to make sale / purchase plot.
    Regards.

    Reply
    • Muhammad Khalid Khan
      As a seller you have to pay WHT 1% if you are filler and 2% if you are non filler
      Gain tax = 10% if sold within 1 year of purchase
      7.5% if sold within 2 years of purchase
      5% if sold within 3 years of purchase
      0% if if sold after 3 years of purchase

      Reply
  26. Muhammad

    on   said 

    Dear Sir,
    Kindly tell us,what are the TMA charges /fee on property transfer.Is these charges are fixed in percentage or vary and what are the other charges except stamp duty and withholding tax.
    Thanks,

    Reply
    • Muhammad
      Yes taxes are fixed
      Stamp duty 5%
      Withholding tax = 2% for filer 4% for non filer
      TMA Tax + mis charges = 1.5%
      TMA = Town Municipal Authority
      Recently government has issued orders that all transactions or developments will be approved only after the approval of TMA

      Reply
  27. Farooq

    on   said 

    Dear Sir,
    I purchased the a 10 marla plot on control rate of 225000 per Marla. I paid 208000 transfer charges on 2250000.
    Stamp Duty i paid 112500
    what are the remaining charges=95500

    Reply
      • Farooq

        on   said 

        Dear Malik Anwar Ul Islam,
        Thanks for reply.He gave me the below list. Is this correct.

        Stampt Duty (5% on DC rates) 112500
        With Holding Tax (2% on FBR Rates) 52500
        TMA fee 33750
        Ferd from Patwari 3000
        Misc Charges 6500

        Total 208250

        Reply
        • Farooq
          Taxes are fine. 2% WHT shows you are tax payer. You should claim WHT in your annual tax returns.
          Stamp Duty = 5%
          WHT = 2%
          TMA – Town Municipal Authority tax is 1.25%.
          Misc charges are 0.25%
          Total for filer = 8.5% of property value

          Reply
  28. Nayyar

    on   said 

    Hello

    I just have one question. I am a filer and about to purchase a plot. Do i have to pay stampduty+CVT (5%) at DC rate price or the actual price of the plot? People are telling me that 5% on DC rate is the minimum that is required. Even if i pay at the actual price, it is no way different from paying at DC. Please guide.

    Also, if i pay 5% provincial tax at DC rate, can i mention plot complte price in my FBR account? I understand the FBr taxes i.e. 236 k and W.

    Looking forward

    Reply
  29. I am owner of a 500 Sq Yard plot in DCK Karachi. I am holding that property in my name do i have to declare the property in Tax Return and is there some tax to be paid on yearly basis to FBR on subject property every year.

    Reply
  30. Hasan

    on   said 

    I purchased property in February 2017.
    2% stamp duty
    2% cvt
    2% advance tax for filer
    1% registration fee
    1% town tax
    Now I am informed that my file is ready to be picked up and I have to pay w tax (section 236w). Is this correct?

    Reply
  31. Kashif Imran

    on   said 

    i received tax notice (capital value tax) on my purchase of plot which i purchased in march, 2014.
    how much tax i will have to pay 2 % or more with any kind of fine?

    Reply
  32. hussain

    on   said 

    hello sir,
    I need your assistance in calculating the total tax on selling my 10 marla house which is recently constructed. If I sell it in 14.5 million (1 crore 45 lacs). Which taxes will be applied and how much will they be?
    Thanx.

    Reply
    • Hussain
      As a seller you have to pay 10% Capital gain tax as per FBR Rate if you sell your house within 1 year of purchase. Secondly you have to pay 2% WITHHOLDING TAX if you are non filer and only 1% WITHHOLDING TAX if you are tax payer. WITHHOLDING TAX is also as per FBR Rate.

      Reply
  33. A two kanal house owned by father was transferred to sons as HIBA in May 2017. House is in DHA Lahore. Now the house is being sold by both brothers. Kindly advise if brothers joint owners will be liable for WHT @ 2% as both are non filers as they are living abroad. Or will the 2% WHT amount be divided among both brothers equally? And how much will the total amount of WHT or how can it be calculated. Thanks a lot. ANis

    Reply
    • Anis
      Yes 2% WHT will be divided among both brothers. Plots have different valuation rates and houses have different valuation rates. As you have house so you have to pay WHT on FBR plot rate and also on construction cost. Its not much to worry as DHA Office has every thing calculated as per Phase wise. So during tranfer, DHA Office will give you and the buyer the list of taxes to be paid.

      Reply
  34. Umair

    on   said 

    Dear Ghar47

    My father bought a house some ten years ago, he wishes to transfer into my name. I am Filer and my father is non-filer. please guide us how much taxes we both have to pay in simple transfer and through gift deed.

    Further, if i pay any tax, can it be adjusted in my salary?

    Reply
  35. Imran

    on   said 

    Dear,
    I am overseas Pakistani, working in UAE, planning to buy a property in Karachi of worth 4crore, as i am overseas i am non filer, can you plz guide me how much taxes and their classification i have to pay by law. Regards.

    Reply
  36. Arsalan

    on   said 

    Dear Ghar47,

    I am overseas Pakistani, I am willing to buy a flat in Karachi. How much taxes I have to pay? Can I purchase through direct remittance? Or I have to transfer money first to my Pak bank account and than purchase?

    Reply
    • Arsalan
      You can buy via remittances and also by transferring money in Pakistani account
      As a buyer you have to pay 5% stamp duty as per DC Rate
      PLUS
      2% WHT if you are tax payer and 4% WHT if you are non filer

      Reply
  37. I am buying a 8 Marla 119 Sq Ft plot in sillanwali sargodha. DC rate is 1 Lac 10 K per Marla. How much tax do I have to pay and what about the owner? How much he has to pay on selling the plot.

    Reply
    • Yasir
      Owner will pay 10% CGT as per FBR if property is sold out within 1 year of purchase
      Owner will pay 7.5% CGT as per FBR if property is sold out within 2 year of purchase
      Owner will pay 5% CGT as per FBR if property is sold out within 3 year of purchase
      Owner will pay 0% CGT as per FBR if property is sold out after 3 years of purchase
      PLUS
      Owner has to pay 1% WHT if he/she is tax payer and 2% WHT if non filer
      BUYER
      Buyer has to pay 5% Stamp Duty as per DC Rate which is in your case Rs. 45,000/-. Plus 2% WHT if you are tax payer and 4% if not paying tax.

      Reply
  38. Marryam Shoaib

    on   said 

    I purchased a plot on 15.3.15 and sold it on 1.08.17. Plot is located in Islamic Research Cooperative Housing scheme Nashter Town Lahore. It’s area is two kanal and one Marla (41 Marla). How much gain tax is due as FBR rate. Is there any other tax or duty to be be paid by me (seller). An earliest response is requested as I have to settle it tomorrow morning.

    Reply
  39. Majid Ahmad

    on   said 

    Dear Author,
    First of all I would like to appreciate your efforts.
    I am overseas Pakistani and willing to buy a 5 Marla house in Tajpura Lahore – LDA own Scheme. The price of the house is set Rs. 80 Lakh. I will appreciate if you please let me know the taxes, charges , fees TMA etc. I have to pay.
    I am not filler as I live abroad. Incase I ask my bro to buy the property on his name he is also not filler.
    CVT [Whats that] and how much I have to pay as buyer
    DC [Whats that] and how much I have to pay as buyer
    TMA
    FBR etc.
    LDA FEE

    Kind regards,
    Majid

    Reply
    • Majid Ahmad
      You have to pay only Stamp duty as per new laws introduced in budget 2017
      According to it
      5% STAMP DUTY as per DC Rate
      4% WITHHOLDING (WHT) as per FBR Rate
      PLUS
      3% TAX as difference of FBR Rate & DC Rate if you cannot show the source of income.

      Reply
      • Majid Ahmad

        on   said 

        Respected Sir/Madam,

        Thank you very much for your prompt reply. I have source of income as i am working Abroad i can send my employment letter along with other necessary details as required. So total i have to pay 9% or purchase value ? there is no need for TMA charges.

        Regards,

        Reply
  40. Sana Shahid

    on   said 

    Dear Sir,
    1. I have heard that CVT is exempted upto 10 marlas house, is it true?
    2. Moreover, withholding tax will be paid both to the Development authority and the registering authority, as both are demanding the withholding tax?
    3. What proof I have to provide, for being tax filer?
    4. I have to pay CVT and stamp duty on DC rate or FBR rate?
    5. you have mentioned 6 % DC rate of CVT, while registering authority confirmed as 5 %, please clarify?
    Thanks in advance

    Reply
    • Sana Shahid
      The government have ended all taxes for registry of property
      Now just 5% stamp duty as per DC Rate
      Stamp Duty is collected by Provincial government and is paid as per DC Rate for registry of proeprty
      Withholding tax is collected by federal government and is paid as per FBR Rate
      2% WHT if you are tax payer
      4% WHT if you are non filer
      0% WHT if property worth is less than 40 LAC as per FBR Rate

      Reply
  41. Shahid Khan Yousafzai

    on   said 

    Dear Sir,
    I am a Bank Officer, I want to purchase a built up house from Sheikh Maltoon Town Mardan, under Mardan Development authotiy. (MDA) against finance from Bank. As per policy I have to mortgage the purchased house with bank as secuirty. When I approached the sub registrar office for the mortgage purpose. They informed that you have to first register the sale deed, then u will mortgage the same. the expenses is round about 8 lakh. Please advise, why the house can not be mortgaged directly with bank, without registry, after getting NOC from MDA and sale deed. I am very anxious, please advise and explain in detail. Thanks in advance

    Reply
    • Shahid Khan Yousafzai
      Banks want security for their capital. Loans are actually profits / investments for the banks. Bank never invest in risking environment. As per Banking system, its easy to claim the money if they have the registry of the property in loan contact. NOC from MDA and sales deed is the initial stages of property sale and purchase and real evidence of your ownership is the registry. So you should first register/transfer property on your name and then bank will finance your mortgage. So in short you have to pay 8 LAKH registry fee first so that bank is sure that property is on your name and then they will happily finance you.

      Reply
  42. Sana Shahid

    on   said 

    Dear Sir,
    I want to purchase a built up house in Sheikh Maltoon town mardan under Mardan Development authoity. Please advise the whole purchase procedure. How much transfer fee will be paid to the MDA and to the registering authority?
    Please also advise, what is the difference between fair market value, FBR rate and DC rate? I have visited sub registrar office. there I have observed that the DC rates were higher than FBR official rates.

    Reply
    • Sana Shahid
      You have to pay 6% tax as per DC Rate.
      2% WITHHOLDING TAX (WHT) as per FBR Rate if your are tax payer
      OR
      4% WHT as per FBR Rate if your are non filer
      Yes, there is lot of confusion in present tax system and government is trying hard to solve the confusion. In many cases FBR rate is greater than DC rates. But in rare cases DC rate is greater than FBR Rate.

      FAIR MARKET VALUE
      Fair market value is the original price of property on which citizens buy or sell properties.
      FBR RATES
      This property valuation is calculated by FBR to collect Withholding Tax and Capital Gain Tax
      DC RATES
      Its the property rate of Deputy commissioner, according to which property is being registered and different fees are collected like stamp duty, society tax etc.

      Reply
  43. Assalmaoalikum.
    I have one 5 Marla plot and one 5 marla house. My father died few years ago and i want to transfer the house on my name. Can you please tell me how much tax i will have to pay for it ?

    Reply
      • I have been told that you will have to pay
        5% Govt tax
        1 % Town commett or local counsel tax
        3% gain tax.

        The house was valued at 20 lakh and plot was valued at 11 lakh. So can you tell me what is the legal tax what i will have to pay ? Is it really 2.5 lakh ?

        Reply
        • Saaim Ali
          Government has changed it
          Just 5% stamp duty as per DC Rate for registry of property. So as your property value is less than 40 LAC, so no Withholding Tax.
          But you may get some concession as its inheritance property.
          Urban properties gifted in family will have to pay just 3% stamp duty as per DC Rate to transfer property.
          Just visit the local authority office and they will tell you all detail as per your property and specifications.
          According to my assessment, your should pay just 1 LAC for registry.

          Reply
  44. Jamil Ahmed

    on   said 

    I want to know about payable tax on purchasing agricultural land in kpk…
    The land is in shairgadh near main swat road, on link road but the land is agricultural…

    Reply
  45. UZMA MALIK

    on   said 

    I WANT TO SELL MY 05 MARLA HOUSE LOCATED IN CANAL BANK SOCIETY NEAR FATEH GARH LAHORE. HOW MUCH TAXES AND DUTIES I HAVE TO PAY AS SELLER FOR TRANSACTION AMOUNT OF 75,00,000/-

    Reply
    • UZMA MALIK
      You have to pay 2% WHT if you are tax payer as per FBR
      4% Withholding tax if you are non-filer as per FBR
      0% CGT if property is sold after 3 years of purchase
      or
      15-20% CGT as per FBR if you are selling within 3 years of purchase of house

      Reply
  46. If any one have bought 2 – Kanal plot in lahore city. Being Non filer of tax what are taxes applicable to him/her and what would be tax rates according to 2017-2018 tax year. please advise regarding list of taxes applicable on purchase of 02- Kanal land in urban city besides of WHT and Stampt Duty which is my knowledge are 4% and 5% respectively for a Non- Filer.

    Kindly advise..

    Reply
  47. Asif

    on   said 

    I want to buy 10 marla plot in mandi bahauddin @ 3.5 lac per marla. I am sending money from abroad to my father who is a filer. What will be the total fee if i buy it on my name (non-filer) and what will it be if i buy it on my father’s name? And is there any benefit or tax relaxation on foreign-earned money? Thanks

    Reply
    • Asif
      Stamp duty 5% (DC)
      Tax u/s 236W 3% (FBR-DC ) only if you cannot show proof of income
      WHT 4% (non-filer)
      or
      WHT 2% (filer)
      So only difference is Withholding tax non filer pays 4% and filer just 2%

      Reply
  48. Abdullah Chaudhry

    on   said 

    Most Respected sir. I am living abroad and intend to buy 10 marla house at bahria town Lahore. Kindly let me know how much govt fees i have to pay to transfer in my name.Anxiously awaiting your positive response. Thanks Abdullah Chaudhry

    Reply
  49. Aseem

    on   said 

    Sir, my father built a one-kanal home in Allama iqbal town, Lahore in 1989. He died in 2012. The home was transferred in the name of 3 successors; me, mother, my sister in 2015 . My sister and mother surrendered their share in my favor in 2016 on which more than Rs.90,000/- was paid as CVT.
    I have been a filer for 7 years.
    Now I want to sell it. my questions are:
    1. Do I have to pay any CGT on this?
    2. Would WHT be applicable since family home is more than 25 years old?
    3. Would stamp duty/CVT be payable again?
    Thanks and regards…

    Reply
    • Aseem
      Seller pays two taxes
      WHT – Withholding Tax and CGT
      You have to pay 1% WHT as you are filer
      and if you sell now you have to pay 20% CGT But if you sell after 3 years of purchase or registry date on your name, zero CGT

      Reply
        • Umar Xahid
          Punjab government is adopting to new changes and will soon start working on registry
          Now according to Punjab Budget you have to pay 5% fee for registration of property as per DC Rate
          Punjab government will soon issue the new DC Rates

          Reply
  50. Sir I have bought land 10 years ago but case was in court and I have won the case and for registration I have paid all dues except withholding tax can I got exemption in withholding tax

    Reply
  51. abcdef

    on   said 

    Hello! i have purchased the house in Rawalpindi Cant area,Could anyone help to let me know about TIP tax should be pay according to FBR rate or DC rate.

    Reply
  52. Muhammad Rahim

    on   said 

    Thank you very much for your great work.
    I am a tax filer since almost 10 years.
    Please share
    can i get tax rebate on CVT (PKR 15,000) paid on a plot in Askari Welfare Society?

    Best Regards

    Reply
  53. KHALID MAHMOOD

    on   said 

    I had purchase plot of 10 marla in 2015. now I am planning to make a house on it and sale the house. What are the taxes if I am non filler.

    Reply
    • KHALID MAHMOOD
      You have to pay CGT & WHT
      Capital Gain Tax (CGT) will be calculated as New FBR Rate – Old DC Rate = Profit
      Profit x 5% = CGT
      Withholding Tax (WHT) will be 2% according to FBR Rate

      Reply
      • naveed

        on   said 

        when you build the house , capital gain will be almost double, how the construction cost will be dealt ( can be deducted from the actual capital gain). example is cot of plot 10 million+ cost of construction 10 million = your sale price 22 million. Now would fbr taxes be on 22 million or 12 million as 10 million is expenses to build the home. any one know this

        Reply
  54. Rafique

    on   said 

    Dear admin ,

    I live in germany ….I paid for a two 10 marla plots in behria town plots were bought in 2014 house on one was built and the second plot was joined to make the lawn and fees were paid to behria town authorities on it and my parents moved in the there last yr in june . I paid for building the house as well but since I couldn’t go to Pakistan due to visa issues and my plot and house is on my mothers name . They are asking me to get it transferred on my name but transfer fees are are so high i have to pay another 3-4 lac on the property to get it on my name . A friend suggested that my mother can gift of hiba the property… can you please tell me how my parents can do that for me as I am still not able to go back to Pakistan please give me the cheapest and best alternative for this problem. Parents are old and want me to get paperwork done as soon as possible i have two brothers who know the house is mine and wont object on my mom officially gifting me the property please advise thanks in advance

    Reply
    • Rafique
      Yes you should transfer it on your name and your mother can gift you property.
      Best way is to hire good lawyer as they are expert in their field.
      Lawyer will send you documents for signature and by your ID copy lawyer will do the transfer for you.

      Reply
  55. Ali Khan

    on   said 

    I am a filer and going to purchase a 5 marla house of PKR 10000000 (10 million).
    FBR rate is 300000 per marla.
    How much money or tax will be required for transfer/registration?

    Please help!

    Reply
  56. Rashid Khan

    on   said 

    Hi,

    I am a filer and non resident, I am going to buy 1 flat in Karachi, what I understand according to new rules, I have to pay 2% CVT, 3% SD & 1% Registry fees on DC Value, in addition to this I have to 2% withholding tax on FBR value, plus if I am not able to show my income as white I have to pay 3% tax of difference of value of FBR & DC value.

    Now my questions are as follow:-

    1. Which figure to be shown as white (FBR or DC) to avoid to 3% tax on difference to value.

    2. Can I ask my father who is retired from government services 10 years back transfer FBR/DC value to my account and will prepare gift deed in my favour as showing a white amount in my favour for purchase of flat.(his income is white).

    3. Can I claim 2% withholding tax on FBR value as refund in my annual income tax return.

    4. Which amount to be transferred as white to seller DC or FBR value (for making pay orders and give in front of registrar).

    5. What will happen if at time to registration in front of registrar if amount of taxes is bit high or low, or it must be 100% accurate.

    Please reply in details and soon because next week I am to finalize deal.

    Thanks and Regards

    Reply
    • Rashid Khan
      Yes you have to pay 6% fee according to DC Rate for registry of property.
      2% WHT according to fbr value
      3% difference to be paid FBR – DC RATE = Difference x3%
      Yes your father can transfer money in your account as gift
      You have to show proof of income according to DC Rate
      Yes 2% WHT can be claimed in annual tax return

      Rest you can meet local authority or registrar and they will help you out in every matter.

      Reply
      • Rashid Khan

        on   said 

        Dear Author,

        Thank you so much for your reply.

        It means I will ask my father to transfer DC value to my bank account for showing income as white.

        At last I would like to ask is it any “town tax” 1% of DC value ?

        Please confirm

        Reply
        • Rashid
          Yes it is called as town tax or society tax. Total registry fee is 6% according to FBR Rate
          Yes your father should transfer DC price in your account as white money so you should not pay 3% difference on FBR and DC Rate

          Reply
          • Rashid
            Yes it is called as town tax or society tax. Total registry fee is 6% according to FBR Rate
            Yes your father should transfer DC price in your account as white money so you should not pay 3% difference on FBR and DC Rate

  57. Akbar Ali Shaikh

    on   said 

    Sir, Can you tell me the the procedure regarding the transfer of registration of the property document?
    Where can i make registration of the property document in Karachi?

    Reply
  58. Akbar Ali Shaikh

    on   said 

    if i am purchasing the property of less than RS.4 million then what will be the implication of taxes on me? Should i pay stamp duty and registration fees even if property;s cost less than Rs. 4 million

    Reply
    • Akbar Ali Shaikh
      If the property price is less than 40 Lac you have to pay only 6% tax on registry of property
      WHT – Withholding Tax is not applicable on properties less than 4 million PKR

      Reply
      • Akbar Ali Shaikh

        on   said 

        according to which section should i pay tax of at the rate 6%?
        On which amount the rate is applicable?the value is defined by the FBR or DC rate.

        Thanks in advance for you response towards my query.

        Reply
  59. Saboor

    on   said 

    I am going to buy a plot of 8 marlas in military account coop housing society college road.
    Can u please lèt me know the fbr and dco rates i cant find in the list.
    I m a tax filer.

    Reply
    • Saboor
      Its not listed
      You just have to pay 6% tax for registry of property
      For Rates, you can call FBR.
      Its rate will be 4 LAC Per Marla
      So your tax will be 1.8 LAC

      Call FBR for rates in your area

      Reply
  60. Zuhair

    on   said 

    I am a filer and going to buy a 4 marla house for 55 lac in Feb 2017.
    DC rate is 180,000 per marla (total 720,000)
    FBR value is 216,000 Marla (864,000)

    I have paid stamp duty 3% of DC rate, CVT 2% of DC rate and TMA fee @ Rs.100/sq feet, But now the society is asking me to pay 3% CVT on difference of FBR value and DC rate of land.

    Please tell me about the applicability of this tax.

    Reply
    • WAQAS
      You have to pay 10% according to FBR Rate if property is more than 0 LSC
      Just 6% according to FBR rate if property worth is less than 40 LAC according to FBR
      Taxes are paid according to FBR Rates
      Not according to market value
      FBR property rate are lower than market price of propriety

      Reply
      • WAQAS

        on   said 

        how I came to know about FBR rate of my plot.
        it is situated at Tehsil Talagang Distt chakwal, Punjab. It is available on main double road.

        Reply
          • WAQAS

            on   said 

            the price of the plot which I suppose to pay that is 57Lac. how I know FBR rate in that area. if I do apply for registration to be a filer now so it will help me for tax deduction next month at the time of transfer my plot

            your support will be ,much appreciated

  61. Talib wasti

    on   said 

    Can any one tell me the last date of amenesty period for buying and selling the plots. I have a 200sq commercial plot in DHA Karachi . LAST DATE OF AMENESTY PERIOD FOR BUYING And SELLING. Thank you

    Reply
  62. Taimoor

    on   said 

    salam,sir im going to buy the property in pakistan rajput town where FBR rate is 430250,the plot is 10.50 marla,im filler kindly please update me with all the taxes i have to pay much appreciate thanks.

    Reply
  63. SOHAIL

    on   said 

    MY MOTHER LEFT A FLAT IN DHA 2 EXT KARACHIABOUT 990 SQ FT (KMC LAND) LEAVING 3 SONS & 1 DAUGHTER BEHIND. 1 SON WAS DIED LEAVING 3 SONS & 1 DAUGHTER & A WIDOW. WE OBTAINED LETTER OF ADMINISTRATION & GOT TRANSFERRED IN CBC .WHAT IS THE PROCEDURE & FEES OF DHA & REGISTRAR.IN THE NEXT STAGE WE WILL TRANSFER IT TO ANY OF THE LEGAL HEIR EITHER BY SALE, GIFT OR RELINQUISH DEED.WHAT WILL BE THE PROCEDURE & TAX IN EACH CASE.SUGGEST WHICH CASE IS MORE SUITABLE

    Reply
  64. Umair Mustafa

    on   said 

    Dear Admin,
    I had registered myself for a 5 marla plot in a residential scheme in Feb, 2016. Installments will be completed in Apr, 2019. Total amount to be paid is 18 Lac. Plot will be registered on my name after 50% of the amount has been paid (suppose in Sep, 2017). I have three questions:
    1) Should i declare it in asset form? If yes, then should i have to increase its value every year as payments have been made? Or should i just declare it after completion of installments in 2019?
    2) What value of plot i have to declare in asset form, actual value or according to FBR valuation (FYI, FBR valuation rate for that area is not available).
    3) As it will be my first property, so should i have to pay any taxes (CVT, Stamp Duty, registry fee) when it will be transferred to my name?

    Reply
  65. Saad Farooq

    on   said 

    You mentioned that Buyer has to pay the registry fee, stamp duty, capital value tax and withholding tax (for property worth more than 4 million). All these taxes will be calculated as per new FBR rates or dc rates? Suppose DC rate per marla is 150,000 while FBR rate is 700,000. If only FBR rates going to be used then whta is the purpose of DC rates now?

    Reply
  66. Saad Farooq

    on   said 

    Do the capital gain tax percentage values of 10% for 1st year, 7.5% for 2nd year and 5% for 3rd year still hold? Someone told me that this has changed. Secondly, if someone gets ownership of a house before July 2016 via a court decree involving oral gift and the decision gets implemented in Sub-Registrar office of relevant town in Lahore in November 2016, then what would be the cost price considered for calculating Capital Gain Tax if he wants to sell the house in next few months? He did not pay anything to get the ownership which he got via court decree.

    Reply
  67. Awais Malik

    on   said 

    I have sold and transferred a house in DHA Lahore Phase III and had received clearance from CANTT Board myself and now when buyer is trying to submit CVT and stamp papers they are saying TIP tax is due. They have issued TIP tax in the name of the purchaser and not seller. Kindly advise who is responsible for this.

    Reply
    • Awais Malik

      TIP TAX = Transfer of Immovable Property TAX

      This tax is paid in Cantonments

      According to WALTON CANTT

      This is an incidental tax and is levied @ 3 % of the consideration value of the property being transferred; the consideration value is generally worked out on the basis of evaluation carried out by the District Revenue Authorities for “ad valorem stamp duty”

      why IS THIS CHARGED
      Some time due to services provided like sewerage, gas, electricity, or any other developments or miscellaneous reason.

      People who have used / availed services of cantonment have to pa it. OWNERS PAY THIS TAX
      Strange they did not charge it at first place.

      Its better to visit Walton Cantonment office located near R.A. BAZAR for complete details

      Reply
  68. Shoaib

    on   said 

    Dear Bloger ,

    Please Guide , What exactly Seller has to pay in form of Taxes and What Buyer has to Pay.

    Just in One Line Please

    Reply
  69. fazle

    on   said 

    Author,
    Sir, Prices increased in open Plots (and also houses) 5 to 6 times since January 2013. In DHA karachi phase 8, 500 yards plot was trading at 9 million in 2012 now its 50 to 55 million, Creek vista apartment was for 9.5 million in end 2012 now its for 50 million. Even if prices come down to 50% from june 2016. Even than rates are un-natural and too high considering our GDP growth (avg. 4%) + Population growth (2.5%) + Non-residents investments (invested in property App. 6 bill. + urbanization 2%.

    Reply
    • Fazle
      Its a reality that property prices are out of the reach of majority of Pakistanis. Hope so that this property price crash will provide some relief for the general public.
      House affordability in Pakistan will increase by the initiatives of government to build affordable housing in Pakistan.

      Reply
    • Amjad
      Many thanks for sharing current updates by City42 and other top Pakistani news papers
      Hope this link helps people
      Now people are understanding that Ghar47 was the only real estate website in Pakistan that presented the real picture of Pakistan property market. Many people first claimed that Ghar47 wants to crash property prices and real estate market. Now everyone can see the effects of new taxes. Market is behaving in the same way as predicted by Ghar47.

      Reply
  70. Abdul

    on   said 

    thank you for the informative posts and a realistic forecast about falling property prices.
    what is your opinion/forecast for Karachi property market?
    i feel the prices in Karachi were highly inflated and these new valuations and taxes would have a huge impact on prices, major crash?
    how does Ghar47 see karachi market? a) for densely populated areas. b) for DHA etc?

    Reply
    • Abdul
      Price are crashing every where
      Karachi
      In populated area price crash will be 20-25%. Reason as trading and speculation is low
      Property price crash in DHA Karachi = 40-50%. Reason trading was high and so was speculation.

      Reply
    • Amjad
      Many thanks for the very informative post about current property market situation

      Pakistan property crash 2016 was first forecast by Ghar47.com. But unfortunately no one was ready to realize it. Even many realtors and investors commented that Ghar47 analysis is biased. What market is reacting, was OUR forecast that new taxes are worst for realtors but best for general public as prices will come down and it is happening. It was our forecast that prices will mostly drop in housing schemes where empty plots are in abundance and day trading / speculation is very high.

      According to THE NATION
      property prices in Gulberg Lahore and DHA Lahore are 25% down.

      http://nation.com.pk/newspaper-picks/04-Aug-2016/property-transfer-cost-increases-up-to-200pc

      The taxes are not unfair.
      But realtors couldn’t get bigger piece of cake.
      Property prices will fall 50% of what were in June 2016. Even registry fee is high, but decreasing prices will ultimately help the genuine buyers.
      The days of unchecked real estate grown has come to an end.

      Reply

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