Updated: Saturday April 19, 2014/AsSabt
Jamada El Thaniah 19, 1435/Sanivara
Chaitra 29, 1936, at 07:45:23 AM
The
(Act XVI of 2013)
C O N T E N T S
Section Heading
1. Short title, extent and commencement.
2. Amendment
in Act V of 1958.
3. Amendment
in Act X of 1958.
4. Amendment in Act XXXII of 1958.
5. Amendment in Act I
of 1972.
6. Amendment in Act I
of 1997
7. Amendment in Act VI of 2010.
8. Amendment in Act XV of 2011.
9. Capital gains tax on immovable property.
10. Luxury tax on houses.
[1][1]The
(Act XVI of
2013)
[29
June 2013]
An
Act to
levy, alter and rationalize
certain taxes, fees and duties in
the
Preamble.– Whereas
it is expedient to levy, alter and rationalize certain taxes, fees and duties
in the
It is
enacted as follows:---
1. Short title, extent and commencement.– (1) This Act may be cited as the Punjab Finance Act,
2013.
(2) It shall extend to the whole of the
[2][2][(3) It shall come into force on the first day of July 2013
except the provisions of clause (a) of section 2, section 5 and section 9 which
shall come into force on such date as the Government may, by notification,
specify.]
2. Amendment
in Act V of 1958.– In the
[3][3](a) in section 3, in sub-section (2), for the word “twenty”,
the word “ten” shall be substituted; and
(b) in section 4, for clause (i), the following shall be substituted:---
“(i) one residential
house, measuring an area not exceeding five marlas,
used for residential purpose except a residential house with annual value of
more than five thousand rupees situated in a part of a rating area which is
category A area.”
3. Amendment
in Act X of 1958.– In
the Punjab Entertainments Duty Act,
1958 (X of 1958), for section 3-A, the following shall be substituted:---
“3-A. Duty on special classes of
entertainment.– Notwithstanding anything contained in section 3, the duty
on the entertainments mentioned in column No. 2 of the following Table shall be
charged at the rate mentioned against each entertainment in column No. 3:---
|
Sr. No. |
Entertainment |
Rate of duty |
|
1. |
Admission to
horse racing |
Two hundred
percent of the payment for admission or two hundred rupees per admission
ticket, whichever is higher. |
|
2. |
Circus |
No duty |
|
3. |
Fashion show |
Twenty percent
of the total amount paid to the owner or management of the premises or total
expenditure made by organizer or sponsor, whichever is higher. |
|
4. |
Musical show |
Twenty percent of the payment
for admission in a musical show where admission charges are five
hundred rupees per person or more.” |
4. Amendment in Act XXXII of 1958.– In the Punjab Motor Vehicles
Taxation Act, 1958 (XXXII of 1958), in section 4, for subsection (2), the
following shall be substituted:---
“(2) A person keeping a motor vehicle shall pay
the tax as follows:---
|
Sr.# |
Tax
period |
Date
of payment |
|
1. |
For the first
quarter of a financial year |
Before the 31st
day of July |
|
2. |
For the
second quarter of a financial year |
Before the 31st
day of October |
|
3. |
For the third
quarter of a financial year |
Before the 31st
day of January |
|
4. |
For the
fourth quarter of a financial year |
Before the 30th
day of April |
|
5. |
For the whole
of a financial year |
Before the 1st
day of October |
|
6. |
For the
entire life of the motor vehicle |
At the time
of registration of a motor vehicle or before the 1st day of
September 2013 |
(2a) If a person
commences to keep a motor vehicle for use, he shall pay the tax before the
expiration of twenty one days from the day when he commences to keep the motor
vehicle for use.”
[4][4]5. Amendment in Act I of 1972.– In the Punjab Finance Act, 1972 (I of 1972), section 9 shall be
omitted.
6. Amendment in Act I
of 1997.– In the Punjab Agricultural Income Tax Act 1997 (I
of 1997), after section 3A, the following
section shall be inserted:---
“3B. Tax on the basis of income tax return.– Notwithstanding the provisions of
section 3, where any person has declared agricultural income for any assessment
year in the return filed under the Income Tax Ordinance, 2001 (XLIX of 2001),
the person shall pay the tax on such income at the rate specified in the Second
Schedule.”
7. Amendment in Act VI of 2010.– In the Punjab Finance Act 2010 (VI of 2010), in
section 6, in subsection (5), for clause (a), the following shall be
substituted:---
“(a) Immovable property,
other than commercial or industrial property, a plaza or multi-storeyed
building, situated in urban area and the value of which exceeds one million
rupees:---
|
No. |
Description |
Rate of
Tax |
|
(i) |
Where the value of the immovable property is
recorded. |
Two per cent of the recorded value of the landed
area. |
|
(ii) |
Where the value of the
immovable property is not recorded. |
One hundred rupees per square feet of the landed
area. |
|
(iii) |
Where the immovable property is a constructed
property. |
Ten rupees per square feet of
the constructed area in addition to the value worked out above.” |
8. Amendment in Act XV of 2011.– In the Punjab Finance Act 2011 (XV of 2011), in
section 7, in subsection (2), for clause (c), the following shall be
substituted:---
“(c) “club” means an association or organization offering members
amenities, services, meals or temporary residence with initial membership fee
of two hundred thousand rupees for any category of members and notified as club
by the Government but does not include fitness centre or gymnasium without
provision of ancillary services of eateries, outdoor sports, conferences,
ceremonies, musical concerts or any other such service;”.
[5][5]9. Capital gains tax on immovable property.– (1) This section shall have effect notwithstanding
anything contained in any other law.
(2) For purposes of this section,---
(a) “acquisition”
means transfer of property through any mode including gift, bequest, will, succession, inheritance,
devolution, dissolution of an association of persons or, winding up or
liquidation of a company;
(b) “Board of Revenue” means the Board of
Revenue established under the Punjab Board of Revenue Act, 1957 (XI of 1957);
(c) “Collector” means the Collector of the
district appointed under the Punjab Land Revenue Act, 1967 (XVII of 1967) and includes the Collector of a subdivision or any
other officer specially empowered by the Board of Revenue to exercise and
perform the functions of the Collector;
(d) “Government” means Government of the
(e) “person”
includes,---
(i) an individual;
(ii) an association of persons;
(iii) a company;
(iv) a body corporate;
(v) a foreign government;
(vi) a political subdivision of a foreign
government; and
(vii) a public international organization;
(f) “recorded value”
means the value declared by the transferor in the instrument, provided that the
declared value of the property shall not be less than the value specified in
the valuation table notified by the Collector of the district; and
(g) “tax” means capital gains tax on sale of an immovable
property and includes any penalty, fee and charge or any sum or amount leviable or payable under this section.
(3) A gain occurring from the sale of
immovable property by a person in a tax year shall be chargeable to tax in that
year at the following rate:---
|
Sr. No. |
Description |
Rate |
|
1. |
|
5% of the
capital gain or 2% of the recorded value at the time of sale, whichever is
higher |
|
2. |
|
4% of capital
gain |
|
3. |
|
3% of capital
gain |
|
4. |
|
2% of capital
gain |
|
5. |
|
1% of capital
gain |
|
6. |
|
No tax. |
(4) The Collector shall determine the
capital gain through calculating difference in valuation at the time of
acquisition and sale on the basis of valuation table notified by the Collector
of the district under section 27-A of the Stamp Act, 1899 (II of 1899) or the
recorded value in the transfer deed, whichever is higher.
(5) The Collector shall assess and collect
the tax, and for this purpose, may exercise any power of the Collector under
section 6 of the Punjab Finance Act 2010 (VI of 2010).
(6) For purposes of appeal, review or
revision, an order passed under this section shall be deemed to be an order of
a Revenue Officer within the meanings of sections 161, 162, 163 and 164 of the
Punjab Land Revenue Act 1967 (XVII of
1967).
(7) Where the tax has been recovered from a
person not liable to pay the same or in excess of the amount actually payable,
an application may, in writing, be made to the Collector for the refund of the
tax or the excess amount within one year of the payment of the tax.
(8) The Board of Revenue may, by
notification in the official Gazette, make provisions relating to the
collection and recovery of the tax or for ancillary matters.
(9) The Government may, by notification in
the official Gazette, exempt a class of immovable property or a class of
persons from the levy or recovery of the tax subject to such conditions as may
be specified in the notification.
10. Luxury
tax on houses.– (1) Notwithstanding
anything contained in any other law, the Government shall levy, assess, collect
and recover tax from the owner or occupant of a residential house at the
following rate:---
|
S. No. |
Description of
Residential House |
Rate of Tax |
|
1. |
Residential house
measuring 1000 square yards and above but less than 2000 square yards; |
Five hundred thousand rupees |
|
2. |
Residential house measuring 2000 square
yards but less than 4000 square yards; and |
One million rupees |
|
3. |
Residential house measuring 4000 square
yards and above. |
One million and five hundred thousand
rupees |
(2) The tax shall be levied on one time
basis and if a residential house is constructed after the commencement of this
Act, the owner or occupant of the residential house shall pay the tax on one
time basis within one year of the completion of construction of the house.
(3) The owner or occupant of a residential
house shall pay the tax in lump sum or in four equal quarterly installments.
(4) In case of payment of tax in
installments, the tax shall be payable before the expiry of each of the four
quarters of the year counted from the date of issuance of notice for the
payment of the tax.
(5) Subject to subsection (6), where the tax
or an installment of the tax is not paid within the prescribed time, a
surcharge of one percent of the outstanding tax per month shall be levied on
the owner or occupant of a residential house.
(6) The Government may, in an individual
case of hardship and for reasons to be recorded in writing, waive the surcharge
or a part of the surcharge on the tax.
(7) A residential house, measuring not more
than two thousand square yards, owned by a widow and in which she herself
resides, shall be exempt from the payment of the tax levied under this section
and if the widow owns more than one residential house liable to tax, she shall
be entitled to exemption only in respect of one house.
(8) Where the tax has not been levied on a
residential house owned by a widow, the tax shall be payable on such house by
her legal heirs or any other transferee not being a widow within one year of
her demise or transfer.
(9) The tax shall not be levied, charged or
paid in respect of a residential house which is transferred after the payment
of the tax.
(10) The tax under this
section shall, as nearly as possible, be assessed, paid, recovered,
administered and regulated as if it is a tax under the Punjab Urban Immoveable
Property Tax Act, 1958 (V of 1958).
(11) The Government may,
by notification in the official Gazette, make rules to carry out purposes of
this section.
(12) In this section,---
(a) “completion of construction” shall be
construed on a day when a house is ready for living or two years from the date
of installation of electricity connection, whichever is earlier;
(b) “Government” means Government of the
(c) “residential house” means a house,
irrespective of its current use, located in a rating area specified as category
A for purposes of the Punjab Urban Immoveable Property Tax Act, 1958 (V of
1958) or located in an area as the Government may, by notification, specify but
shall not include a house owned by the Government, Federal Government, local
government, development authority or any other body or authority owned or
controlled by the Government or in which the Government has substantial
financial interest; and
(d) “tax” means the luxury tax on a residential house levied
under the section
[1][1]This Act was passed by the
Punjab Assembly on 27 June 2013; assented to by the Governor of the
[2][2]Substituted by the
[3][3]This provision shall come into force on such date as the Government may, by notification, specify.
[4][4]This section shall come into force on such date as the Government may, by notification, specify.
[5][5]This section shall come into force on such date as the
Government may, by notification, specify.
Go to Index
| LL. B. – I | LL. B. – II
| LL. B. – III | LL. B.
Directory | Home