If you are planning on investing in properties in Pakistan, then you must understand the CDA property tax bill. The property tax bill is necessary wherever you intend to invest in the country. CDA Property Tax applies to tangible property, including commercial or residential real estate, land, shops, and many more.
Every province in Pakistan has regulatory authorities that ensure property tax payments. The Capital Development Authority (CDA) guides the public about timely payments of property tax. They also guide the public about their issues and queries regarding tax payments. This blog will guide you on how to fulfil the requirements of property tax CDA and give you expert advice as well.
What is CDA Property Tax?
Many people often ask: What is the CDA property tax bill? It is important to learn about the regulatory body that is responsible for the documentation of the property tax bill payment. In Pakistan, there are various regulating bodies such as RDA, LDA, KDA, and others.
These government authorities monitor and regulate the tax payments on properties sold and bought within the jurisdiction of provinces and cities. CDA monitors town planning, maintenance, and building.
The CDA ordinance has been applicable since 1960. Also, they have been in coordination with Islamabad Capital Territory (ICT). Moreover, CDA has digitized the services, including the Urban Land Record System. This online system of payment of e-governance guides individuals in making tax payments.
How to Pay CDA Property Tax?
Taxation is very important for any country, as it boosts the economy by funding infrastructure development. Similarly, paying the CDA property tax bill online reflects a convenient and updated payment method.
As a result, online systems make it helpful for the general public to pay their taxes without any long procedure. MCB account holders can pay their CDA property bills online. Here are some of the branches of various banks that are compatible with tax bill payments online.
| Bank | Branches |
| Askari Bank | All branches in Islamabad |
| First Women Bank (FWB) Limited | G-9, Allama Iqbal Open University, Jinnah Avenue |
| Allied Bank Limited (ABL) | F-8, F-10, F-11, G-7, G-9, G-10, G-11, I-8/3, I-9, I-10, I-11 (Fruits & Vegetables Market) |
| Bank of Khyber | Jinnah Avenue |
| United Bank Limited (UBL) | Civic Centre, Aabpara, G-8 Markaz, F-6 |
| Habib Bank Limited (HBL) | Civic Centre, F-7, Jinnah Avenue |
| NIB Bank | Razia Sharif Plaza, G-7/F-7 |
| Muslim Commercial Bank (MCB) | CDA Secretariat |
The property owners can pay their CDA property tax bill by pay order or check. However, they must keep the check or pay the order in favour of the CDA Director of Revenue. It is also advisable to visit the respective regulatory website to get the latest updates regularly.
CDA Property Tax Bill Yearly Payment Dates
The payment of the property tax bill is applicable every year. CDA updates the yearly payment dates before August 15. However, if you have any queries, you can contact the Director of Revenue. They will guide you thoroughly, or you can also visit the website.
You can visit the property tax payment page and enter your consumer number, and you will get the relevant information. You will get your tax year, amount within the due date, amount after the due date, and bill status. Moreover, you will get your whole record and will not miss your due date.
How To Calculate CDA Property Tax?
There are three primary methods to calculate capital gain tax. You will pay the property tax bills to the CDA according to the policy. The taxpayers should calculate the capital gains tax accurately. Here are the three different methods for your convenience.
New FBR Value
You can use the actual price when selling or buying real estate. Deposit capital gains on the real profits realized.
Old DC Rates and New FBR Value
Deputy Commissioner while at purchase – FBR value at sale = Total Profit (5% on Profit).
New FBR Value Usage
You can calculate the total profit by subtracting the Federal Board of Revenue (FBR) value at the time of purchase from the FBR value at the sale time. Next, apply the CGT rates: 10% for the first year, 7.5% for the second year, and 5% for the third year. Please note that these method percentages are updated according to the CDA guidelines from time to time. It is advisable to stay updated or get expert advice from the best real estate companies in Pakistan.
If the FBR value changes in a new financial year, you can calculate the Capital Gain Tax (CGT) as follows:
Total Profit = FBR Value at the time of sale – FBR Value at the time of purchase. Note that the CGT rate will be 10% for the first year, 7.5% for the second year, and 5% for the third year.
Property Tax in Lahore
As we discussed above, property tax payment varies according to the province. The CDA property tax bill follows the Punjab taxation regulations. Also, property owners in Islamabad will have to get guidance about their province. Excise and Taxation Department is the authority responsible for Punjab.
However, the properties with 5 Marla/Sq or less are not subject to tax. It is necessary to know that investing in real estate is a wise economic choice. Real estate properties in Lahore and Pakistan add value to the initial investments by investors. Moreover, real estate companies play the role of hedgers during inflation.
Lastly,
Understanding the CDA property tax bill is crucial for property owners in Pakistan. Following the online payment systems or getting guidance from the regulatory authorities will help. Stay updated about your property tax filing and payments.
At Union Developers, we assist all property owners and investors to stay informed and know their due dates. Your timely tax payment is important to avoid any kinds of penalties. Our clients always get accurate guidance from our legal experts.
