Punjab raises stamp tax on luxury mansions and urban real estate
News sources said that on Wednesday, June 15, the Punjab government raised the one-time tax on building luxury homes of two Kanals or more. In the new tax document proposed for the fiscal year 2022-23, the stamp duty on urban immovable properties has gone from 1% to 2%. (FY-23).
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Reports say that starting July 1, the government has raised taxes on all luxury homes. But high-end homes that were finished by June 30 will be taxed at the same rates as before. Under the proposed tax, the following formula will be used to charge any house with a covered area of more than 6,000 square feet:
For luxury houses that are two kanals or bigger and have a covered area of more than 6,000 square feet, the tax will go up from PKR 200,000 per kanal to a maximum of PKR 2 million to PKR 300,000 per kanal, up to a maximum of PKR 2.5 million. The government wants to encourage people to build bigger and better homes.
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The new tax rate for properties with more than 12,000 square feet of covered space is PKR 400,000 per kanal, up from PKR 300,000 per kanal to a maximum of PKR 3.6 million.
The government has also kept the tax breaks for people who pay their taxes through e-payment gateways. Tax payments made through the e-payment system will be able to get a 5 percent discount. In the same way, taxpayers will be able to pay once a month, three times a year, or once a year, with certain values:
The annual tax amount will go down by 5% in the first quarter.
If the tax is paid in the second quarter, it will be 1% less than if it were paid in the first quarter.
If you pay your taxes in the third and fourth quarters, a 1 percent surcharge will be added to the annual tax amount each month.
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