Punjab Govt to tax properties on capital value instead of rental income

The Punjab Government has increased the rates of court fees and stamp duties during the Finance Bill 2024-25, moreover, the government has allowed the concerned authority to declare any property as high-value property, reported 24NewsHD TV channel.

Punjab Finance Minister Mujtaba Shuja-ur-Rehamn presented the Finance Bill in the Punjab Assembly on Wednesday. According to the document, the government has brought amendments to the Court Fee Act 1870’s column three. After the changes, the court fee will be Rs100 instead of Rs1 and Rs 500 instead of earlier Rs2

The Finance Bill also proposed an increase in stamp duties by amending the Stamp Act 1899. According to new amendments, the stamp duty which was 100 rupees has been increased to 300 rupees. The stamp duty of 1200 rupees has been increased to 3000 rupees.

The Punjab government has also decided that tax on properties will be collected according to capital value instead of the rental table.

According to the bill, if a person will pay less tax or try to evade tax, now fine will also be imposed on him.

In the Punjab Finance Bill 2024, the government has decided to increase stamp duties on affidavit, mutual agreements, power of attorney, divorce papers and rental agreements.

According to the Punjab Finance Bill, the government will recover Rs4.2 billion rupees from the people's pockets annually in the form of hike in stamp duties.

According to the bill, the rate of affidavit has been increased from Rs100 to Rs300, the stamp duty for sale of immovable property was increased from Rs1200 to Rs3000.

Moreover, the stamp duty for contracts worth Rs 5 lakhs was increased from Rs1200 to Rs3000 and the stamp fee for divorce paper was increased from Rs100 to Rs1000.

Reporter: Rao Dilshad