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DHA Multan property tax (2%),

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Thursday, May 7, 2015 05:53 PM 
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AoA
Can some one clarify the impact of property tax when buying files. I am refering to 2% tax imposed by govt in last budget
- Who needs to pay it. Buyer or seller?
- When is it required to be paid?
- The price quoted on dha website includes this tax or not? E.g the current price for DHA multan file is 30.30
CMY replied on Thursday, May 7, 2015 07:16 PM 

There is no CVT. There are no NTN involved in DHA Multan.

People who are afraid of tax authorities mostly buy affidavit files because all their purchases are hidden from tax authorities until they sell their files after its converted to allocation file. Even than tax authorities cant come after sellers because affidavit file was transferred against land. Old land transactions were never reported to tax authorities via DHA or CVT filing etc


This is the main reason most large investors especially from Karachi only buy affidavit files for commercial plots that are purchased with huge unreported amounts and also residential plots in DHA Lahore Gujranwala and Multan. Affidavit is used as shield to keep tax collection people away from you. Less data goes to TAX Dept via CVT bmore safer these people feel. DHA never shares its own data of current owners with tax departments unless there is a court order some owner or there is a NAB case owner etc.

In all cases of allocation files buyer must pay CVT in Lahore etc.

I know an am now going to chewed by few friends here for sharing this hidden secret about this tax related this info :) So answering in advance. Molvi sahbaan I am not suggesting any one to hide their money in affidavit or buy only affidavits. I just have to explain tax implications of allocation and affidavit files purchases. Its readers choice what they wanna do. After affidavit purchase and its sale time both buyer seller info goes to Tax dept when buyer files his CVT and both are tax net because CVT form has both buyer and seller complete data of it.

Tax dept dont go after 99% buyers source of income for purchases due to in efficiency in that department but less than 1% buyers only are some times asked to prove where buyers got that amount to fund the purchase.

Choudry Mujahid Yasin ( CMY )
Info@LREPK.com
Post via cell phone so many spell erros
Jameel replied on Thursday, May 7, 2015 07:36 PM 

Dear CMY,
You mean when we pay 2% advance Tax on any purchase more than 3 Million Value we get any Notice from income tax authorities to file tax or Show source of income, Any one in the Forum Got any of such Notices?[I Hope Not]
There are only few experiences, when people got notice of Tax Dept when they did not pay that 2% advance tax at the time of transfer.
No matter how good is Affidavit file it does not suit overseas person like me, i am always in rush and finish with in days. You see so many friends worried as they could not get even Letters.
CMY replied on Thursday, May 7, 2015 08:06 PM 

Jameel bhai I have added a note at bottom that even though buyers and sellers data is filled in CVT form for allocation files transfers In 99% cases a buyers is never asked by Tax authorities about source of income ar amount source to fund the transfer.

Have seen few people get notices even when they had NICOP and worked lived out side Pakistan and even had mailing addresses other than Pakistan.

Never saw any sellers get a notice after sale of their allocation letter or any property.


Always advocated when possible buy allocation before affidavit because allocation files transfers are always better documented safer quicker for new buyers.

A buyer must be fully knowledgeable or his dealer must be very familiar with affidavit file transfer or you just dont try to save 10000 to 20000 because risk of getting into trouble is NOT WORTH.


Choudry Mujahid Yasin ( CMY )
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