Everything You Need to Know About Property Tax Payment in Pakistan

Everything You Need to Know About Property Tax Payment in Pakistan, Everyone who buys sells or owns property in Pakistan will probably have to pay property tax payment. Owners of real property have to give property taxes. These taxes fund many services that the government provides, such as schools, libraries, roads, and parks. The amount of tax due is usually based on the home’s assessed value.

Withholding tax is to be paid by the buyer and Capital Gains Tax is to be paid by the seller. Now you may ask what these taxes are and how many sorts of property taxes there are in Pakistan. We will discuss all of these in great detail.

Different Types of Property Taxes in Pakistan

There are four types of property taxes in Pakistan:

  • Capital Gains Tax (CGT)
  • Capital Value Tax (CVT)
  • Stamp Duty
  • Withholding Tax or Advance Tax

However, if you are seeking to find a way of not paying property taxes, you might get into extensive trouble with the Federal Board of Revenue. FBR receives information every bit of detail about your income, the investments you have made and real estate transactions.

The demand for taxes is different for all the sectors of Pakistan. Just like other prominent sectors, Real Estate has also testified major changes in terms of Property taxes in Pakistan.

How do I pay my property taxes in Pakistan?

The rules of payment for sales taxes mostly depend on your province, as they all have their own system for collecting the tax that’s due. You should find out about how to pay your property tax payment as soon as you get involved in the property market.

Paying property taxes online

Whether you’re paying income tax or a sales tax bill, you should think to pay online if you can: it can save a lot of hassle and give you greater peace of mind.

Property Tax Exemptions:

The owners having any of the below-mentioned cases are released from paying taxes on property in Pakistan.

  •     The residential house having area of fewer than 5 marlas is located in category      A
  •    A property that is un proficient in commanding annual rent exceeding PKR.        4320 is released from paying taxes.
  •    An individual house commanding annual rent exceeding PKR. 6480 is not taxable if it is f occupied by the owner for his residence
  •    The property which is controlled by orphan or disabled person which is up to          PKR.12150/- per annum is also released.
  •    A building owned by the government is not taxable.
  •    Other religious and Mosques buildings are excused from paying taxes.
  •     Public parks, playgrounds, schools, and hospitals do not fall into the tax net.

Moreover, if you are intending to sell or buy any property, excise and taxation Punjab and Sindh have issued a property tax calculator for the year 2019-2020. Being official, it is the most reliable source from where you can calculate taxes and easily give property tax payment.

What is Withholding Tax? How Did the Withholding Tax Work?

What is Withholding Tax? How Did the Withholding Tax Work? When you begin a new job, reams of paperwork are often waiting. One of the most important documents, the W-4 form, defines the amount of income tax withheld from each paycheck. You pay taxes on salaries, pensions, bonuses, commissions and allowances for vacations and expenses. If you figure your withholding tax correctly, the amount you pay is near to the amount you owe when you file your tax returns. However, if your withholding tax is inaccurate, you might unhappily find yourself paying more money to the IRS.

W-4 forms are not just for fresh employees. Maybe you get married or divorced, start moonlighting, or have a new addition to your family. You want your withholding tax to indicate those changes, so you’d file a revised W-4 form to make modifications. If too little tax is delayed, you’ll pay in April. If too much is kept back you’ll get a refund, but the federal government — not you — has been making interest off of that money.

While both federal and state withholding tax methods are helpful, they are not infallible. Under some conditions, the system can fail, and the withheld amount is incorrect. You’re at peril if you have two or more jobs, both you and your spouse are employed, you owe self-employment tax or you have extra income besides your salary. Luckily, the IRS publishes “How Do I Adjust My Tax Withholding?” so you can see if you’re on the correct track [source: Internal Revenue Service]. If you pay the precise amount throughout the year, you don’t end up having to fork out unexpected money at tax time, and the IRS doesn’t have to try collecting more.

You must settle your payroll tax withholding to reflect the 2019 changes to income tax withholding tables. If you use online payroll software, the information will automatically renew.

The IRS also modernized its federal tax calculator for withholding in 2019. People can use this tax calculator to manage their tax obligations.

Changes to the income tax withholding tables and standard deduction amount don’t mean your employees will receive a higher refund at tax time. Encourage your employees to use the IRS’s tax calculator. Our trusted and highly noted tax and litigation experts will help you. And our tax consultancy service will helpful for you in Karachi.

3 Key Things That You Need to Know as Goods and Services Tax

3 Key Things That You Need to Know as Goods and Services Tax, If you are doing business, you must be deposit some tax other than income tax. It could be in the form of service tax, excise duty, VAT or some sort of custom duty. These taxes are called Goods and Services Tax (GST).

But the execution of GST is not simply a change in tax. GST is a way in which indirect taxes will ‘levy’. Currently, excise duty is imposed on the manufacture, VAT is levied each time goods turn hands and value is added to the product. CST (Central Sales Tax) is charged when goods flow between states. This way a complete product can have excise duty, VAT, CST added to its cost before reaching its final customer. All of these have a different spine of the tax charge. These different taxes will now give way to Goods and Services Tax.

Types of GST

Most supplies are possible to be taxed at the rate of the destination state. Supplies made outside Pakistan would not attract any GST, however, GST registration may still be required for these supplies. Intra-state sales will attract Central and State levy, called SGST and CGST. And inter-state sales will attract IGST, which is likely to be a sum total of CGST and SGST. IGST will also be levied on imports.

When is GST imposed?


  1. You make inter-state sales i.e. you are based in one state and sell assets to a receiver in another state.
  2. If you sell online assets. You can sell through your website or through an organizer like Flipkart or Amazon.
  3. We sell goods on behalf of another taxable person.
  4. You bargain in goods/services on which reverse charge applies—where the buyer has to deposit tax instead of the seller.
  5. GST does not fit to agriculturists. If you grow your own herbs and sell them, for example, then GST does not apply to you.
  6. If you deal in released goods/services then GST does not apply to you.

What should you know about GST registration?

If you run a business, you need to get registered and obtain your GSTN number. Firms with turnover less than Rs 20 lakh (Rs 10 lakh for North-eastern states) are not required to register for GST, but the way things are structured, you can easily do this. With every buyer and seller on board, GST will build a sort of a club of its own with advantages, but at the same time come with the cost of being compliant as well adjusting technology as means to do business. Both bets worth the investment. A tax consultant will guide you where the GST can impose.

What to Do When the IRS Refund Adjusted Changes Your Tax Return Check Amount

What to Do When the IRS Refund Adjusted Changes Your Tax Return Check Amount,  If you get a notice (CP) from the IRS showing that your refund check amount has changed, there’s no need to panic.  An IRS adjusted refund letter doesn’t mean you did anything wrong. Rather, it’s a simple notice letting you know a change has been made to your refund. Understanding why the change was created can help you know how to respond.  If you’ve received one of these tax refund IRS letters, our tax professionals are here to help you respond. Please read these points carefully to know the reason.

Why was I notified by the IRS?

The IRS sends notices and letters (LTR) for the following reasons:

  • You have a balance due.
  • You are due a larger or smaller refund.
  • We have an issue with your tax return.
  • IRS requires to confirm your citizenship.
  • We want further information.
  • IRS changed your return.
  • We need to notify you of delays in processing your return
  • What parts of your return or account the IRS is doing changes to
  • What information the IRS needs from you
  • Why the IRS is making the change

How to make corrections to a tax return

If you did a mistake on your tax return or want to make corrections to a tax return from the prior year, you can correct this with an amended return. An amended return permits you to resolve the problem and claim a more advantageous tax return or make a payment if you realized you filed incorrectly.


The IRS will mail you a notice that compels you to submit additional information. For example, if you submitted the wrong Social Security number on your income tax return, the IRS may mail you a letter inquiring about the correct SSN.


If the changes made by the IRS result in you owing tax, you owe the tax plus any fines and interest, from the date the tax was due. If you cannot manage to pay the tax in full, contact the IRS or make arrangements using the IRS’s online payment confirmation application.

The bottom line never is worried if you receive an IRS refund adjusted letter in the mail. Please contact our experienced tax consultants who will explain the reason of your notice or letter and give you instructions on how to handle the issue.

5 Benefits of Filing Income Tax Returns Online You Must Have Know

5 Benefits of Filing Income Tax Returns Online You Must Have Know,  the method of filing income tax returns online (ITR) can become quite complex. If you don’t understand the implications of what you are filling in the form. So you need a professional consultant who can help to fill ITR form. Our tax consultancy services will guide you to furnish income tax returns online form without any mistake.

People whose annual income is in surplus of the basic exemption limit of Rs 2.5 lakh must obligatory file their income tax returns. Even when there is no tax liability, an income tax return (ITR) must be filed if the total income exceeds the above-mentioned threshold. Filing ITR not only saves you tax-compliant but also offers the following benefits.

1- ITR receipt is a very important document

You require to preserve ITR receipts carefully as they are a very important proof of your income and of payment of your taxes. It includes your total income details and has details of your income from other sources. It can be utilized for many purposes and now as you file your returns online. You can always download it from the E-filing portal of income tax sit.

2- Filing ITR evades penalties

Valid from FY 2017-18, the Income Tax Department levies a penalty of Rs 10,000 under section 234F on people who do not file their income tax return. Filing ITR on time shuns unnecessary penalties. Even though the penalty has been kept at Rs 1,000 if your annual income is not more than Rs 5 lakh, as a law-enduring citizen, it is your responsibility to file your tax returns.

3- Visa processing

Embassies of developed countries like the United States, United Kingdom, Canada, and Australia ask for ITR receipts of the past years to prepare your visa application. They are very careful about your tax compliance and hence, you are asked to provide past ITR receipts.

4- Compensate losses in the next financial year by claiming set off against income

People cannot carry forward losses of the current financial year to the next financial year until an ITR is filed. As per the income tax law, people are not permitted to carry forward losses and set them off against future years’ income. If the ITR is not filed within the due date. So, it is necessary to file your income tax return on time. In order to claim the losses in future years.

5- ITR receipt is a useful document for hassle-free processing of bank loans

Most banks and NBFCs ask for ITR receipts for the latest three years. When you apply for high-value loans like home and car loans. Bankers consider ITR as the most authentic document supporting an individual’s income. Hence, you should regularly file income tax returns online. If you are thinking to avail home or car loans in the future.