THE
(Act XLI of 2012)
C O N T E N T S
Section Heading
1. Short
title, extent and commencement.
2. Amendment in Act II of 1899.
3. Amendment in Act V of 1958.
4. Amendment in Act XXXII of 1958.
5. Amendment in Act XV of 1977.
6. Amendment in Act VI of 2010.
7. Amendment in Act XV of 2011.
[1]THE PUNJAB
FINANCE ACT 2012
(Act XLI of 2012)
[25 June 2012]
An Act to amend certain laws relating to
taxes and duties in the
Preamble.– Whereas, it
is expedient to amend certain laws
relating to tax 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 2012.
(2) It
extends to whole of the
(3) It shall come into force on the first day of July 2012.
2. Amendment in Act II of 1899.– In the Stamp Act, 1899 (II of 1899)–
(a) in section 27-A, in sub-section (1), for the expression “Articles 23, 31 or 33”, the expression “Articles 23, 27-A, 31 or 33” shall be substituted; and
(b) in Schedule I, in Article 45, in column 3, after the proviso, the following Exception shall be inserted:-
“Exception.– Notwithstanding anything contained herein, a fixed stamp duty of five hundred rupees shall be charged in respect of an instrument of partition relating to an urban or rural property including agricultural land, which is partly or wholly based on opening of inheritance.”
3. Amendment in Act V of 1958.– In the
(a) in section 2, for clause (h), the following shall be substituted:-
“(h) “tax” means the tax leviable under
the Act and includes the late payment surcharge in terms of section 12;”
(b) in section 3, in
sub-section (5), for the expression “31st day of August”, the
expression “30th day of September” shall be substituted;
(c) for section 12, the following shall be substituted:-
“12. Payment of Tax and late payment surcharge.– (1) Subject to sub-section (2), the tax shall be paid on yearly basis on or before 30th day of September of the year for which the tax pertains.
(2) The Government may, by notification in the official Gazette, direct that the tax in any rating area for any specified period shall be paid separately.
(3) In addition to the proceedings for the
recovery of the tax under this Act, a late payment
surcharge at the rate of one per cent of the gross payable tax shall stand
imposed on the first day of every month of delay if the tax payable for any year is not paid by 30th
day of September of the said year:
Provided
the late payment surcharge on the arrears of tax as on 30th day of
June 2012 shall stand levied on and from 1st day of July 2012.”; and
(d) in section 16, after
the expression “section 3”, wherever occur, the expression “or the late payment
surcharge levied under section 12” shall be inserted.
4. Amendment in Act XXXII of 1958.– In the
(a) in
section 3, in sub-section (1), in the last proviso, after the word “cabin”, the
words “or a motor vehicle (motor car or jeep) up to 1000 CC” shall be inserted;
and
(b) in the Schedule, in Sr. No. 4–
(i) in column No.2, in para (b), for
the entry at (i), the following shall be substituted:-
“(i) A lump sum tax of rupees ten thousand
shall be charged for motorcars and jeeps up to 1000cc at the time of
registration:
Provided that in case of a motor vehicle registered before 1st day of July 2012, the amount of tax already paid shall be deducted from the payable tax of rupees ten thousand and the remaining amount shall be paid lump sum at the time of payment of the tax due.”; and
(ii) in column No.3, the expression “Rs.600/- per annum” shall be omitted.
5. Amendment in Act XV of 1977.– In the
Punjab Finance Act 1977 (XV of 1977),
in the Second Schedule, at S.No.1, in column 2, for the expression “Companies
registered under Companies Ordinance, 1984 with paid up capital–“, the
expression “Companies registered under the Companies Ordinance, 1984, modarbas, mutual funds or any other bodies corporate with the
paid-up capital or, as the case may be, the reserves in the preceding year–”
shall be substituted.
6. Amendment in Act VI of 2010.– In the Punjab Finance Act 2010 (VI of 2010), for section 6, the following shall be substituted:-
“6. Capital value tax on
immovable property.– (1) This section shall have effect
notwithstanding anything contained in any other law.
(2) For purposes of
this section–
(a) “association of persons” includes a firm,
a Hindu undivided family, a juridical person and a body of persons formed under
a foreign law, but does not include 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 Collector;
(d) “company” means–
(i) a company as defined in the Companies Ordinance, 1984 (XLVII of 1984);
(ii) a body corporate
formed by or under any law in
(iii) a modarba;
(iv) a body incorporated by or under the law of a country outside
(v) a trust, a
co-operative society or a finance society or any other society established or
constituted by or under any law; and
(vi) a foreign association, whether incorporated or not, which
the Government has, by general or special order, declared to be a company for
purposes of this section;
(e) “Government” means Government of the
(f) “person” includes–
(i) an individual;
(ii) an association of
persons;
(iii) a company;
(iv) a foreign government;
(v) a political
subdivision of foreign government; and
(vi) a public
international organization;
(g) “recorded value” means the value declared by
the transferee 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;
(h) “registration authority” includes the person
responsible for registering or attesting or recording the transfer of an immovable property or of the right to use an
immovable property for more than twenty years, and in the case of a cooperative
society or a private housing
society,
its principal officers including president, secretary, accountant or any
similar officer declared by the Collector as the principal officer of the
society;
(i) “tax” means capital value tax and includes any penalty, fee and charge or any sum or amount leviable or payable under this section;
(j) “urban area” means
an area which is–
(i) a rating area under
the Punjab Urban Immovable Property Tax Act, 1958 (V of 1958) except the area where the rate of tax is zero in terms
of section 117 of the Punjab Local Government Ordinance, 2001 (XIII of 2001); or
(ii) an area notified by
the Board of Revenue in the official Gazette.
(3) A
tax on the capital value of an immovable property shall be payable by a person
who acquires an immovable property by purchase, gift, exchange or power of
attorney, surrender or relinquishment of right by the owner or a right to use
thereof for twenty years or more or
renewal of lease so that the total period of lease in favour
of the same lessee is twenty years or more at the rates specified in
sub-section (5).
(4) The tax shall not be payable if–
(a) immovable property is
acquired through inheritance; or
(b) immovable property is acquired through gift
between spouses, father, mother, son, daughter, grandparents and grandchildren,
siblings, or from one wife or widow to
another wife or widow of the same husband; or
(c) power of attorney is executed between spouses or from one wife or widow to another wife or
widow of the same husband, or father, mother, son, daughter,
grandparents, grandchildren and siblings.
(5) The rate of tax in
respect of immovable property is as under:-
(a) Immovable property
other than commercial or industrial property, plaza or multi-storeyed building situated in urban area measuring atleast two hundred and fifty square yards or ten marla, whichever is less–
|
No. |
Description |
Rate
of tax |
|
(i) |
Where
the value of the immovable property is recorded. |
Two
percent 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. |
(b) Commercial or industrial
immovable property other than plaza
or multi-storeyed building of any size
situated in an urban area–
|
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. |
(c) Immovable property whether commercial, residential or composite in
plazas and multi-storeyed buildings of any
size situated in an urban area–
|
No. |
Description |
Rate
of tax |
|
(i) |
Where
the value of the immovable property is recorded. |
Two percent of the recorded value of the immovable
property or one hundred rupees per square feet of the constructed area,
whichever is higher. |
|
(ii) |
Where the value of the immovable property is not
recorded. |
One
hundred rupees per square feet of the constructed
area of the immovable property. |
(6) The tax shall be collected at the time of
registering or attesting the transfer by the person responsible for registering
or attesting the transfer of the immovable property for which the tax is payable.
(7) The
registration authority or any other person mentioned in sub-section (6) shall
submit to the Collector a monthly statement by 10th of the
succeeding month in such Form as may be prescribed.
(8) In case the
statement mentioned in sub-section (7) is not submitted within the prescribed
time, Collector of the district may impose a penalty on the registration
authority or any other person mentioned in sub-section (6) up to rupees one
hundred thousand.
(9) The Collector
of the district or any authority to whom he is subordinate, may himself or
through a person or agent appointed by him for the purpose conduct or cause to
be conducted the audit of the capital value tax including examination of
accounts and records of that registration authority or any other person
mentioned in sub-section (6) and may make an assessment of the tax on the basis
of such audit.
(10) The Collector may, by notice in writing,
require any person–
(a) to furnish to the
Collector or an officer authorised by him any information or produce any
accounts, documents or computer stored information in his possession and
relevant to the tax specified in the notice; and
(b) to attend at such
time and place as mentioned in the notice for purposes of examining him on oath
by the Collector or the authorised officer in respect of the matters relating
to the tax.
(11) The Collector may impound any accounts or
documents produced in terms of sub-section (10) and retain the documents so
long as may be deemed necessary for purposes of examination.
(12) Where a hard copy or computer disk of
information stored on a computer is not made available as required under
sub-section (10), the Collector may require production of the computer on which
the information is stored, and impound and retain the computer for such period
as may be necessary.
(13) For purposes
of this section, the Collector shall have the same powers as are vested in a
Court under the Code of Civil Procedure, 1908 (V of 1908), in respect of the following matter:-
(i) enforcing the
attendance of any person and examining the person on oath or affirmation;
(ii) compelling the
production of any accounts, records, computer stored information, or computer;
(iii) receiving evidence on
affidavit; or
(iv) issuing commissions
for the examination of witnesses.
(14) Where a registration authority or any other
person mentioned in sub-section (6) fails to–
(i) furnish prescribed
monthly statement; or
(ii) provide information or produce documents or record in terms
of sub-section (10) within the stipulated time, Collector of the district may
make an assessment of the tax on the basis of the information or material
available to him.
(15) As soon as may be after making an assessment
under sub-section (9) or sub-section (14), Collector of district shall issue
the assessment order to the registration authority or any other person,
stating–
(i) the amount of tax
due;
(ii) the time, place and
manner of filing an appeal against the assessment order.
(16) The powers
under sub-section (9) or sub-section (14) shall not be exercised after the
expiry of five years from the conclusion of the financial year to which the
assessment relates.
(17) Where the tax is not collected from the
person liable to pay it, the tax may be collected by an officer designated by
the Board of Revenue in this behalf from the said person and the provisions of
the Punjab Land Revenue Act 1967 (XVII of
1967) shall, so far as may be, apply to the collection of the tax as they
apply to the recovery of arrears of land revenue.
(18) Where any person fails to collect the tax or
having collected fails to deposit the tax into the Government Treasury, he
shall be personally liable to pay the tax along with default surcharge at the
rate of fifteen percent per annum for the period for which such tax or part
thereof remains unpaid, and the Collector may recover it from the said person
as arrears of land revenue after giving him an opportunity of hearing.
(19) Where, at the time of recovery of tax under
sub-section (18), it is established that the tax collected from the person has
meanwhile been paid by the person liable to tax, no recovery shall be made from
the person who had failed to collect the tax but the said person shall be
liable to pay default surcharge at the rate of fifteen percent per annum from
the date he failed to collect the tax to the date the tax was paid.
(20) A person personally liable for any amount of
tax under sub-section (18) as a result of failing to collect the tax shall be
entitled to recover the tax from the person from whom the tax should have been
collected.
(21) The recovery of tax under sub-section (17)
does not absolve a person who failed to collect the tax from any other legal
action in relation to the failure or from a charge of default surcharge.
(22) The order passed by an officer under this
section shall be deemed to be an order passed by a Revenue Officer under the
Punjab Land Revenue Act, 1967 (XVII of
1967).
(23) The provisions of sections 13 and 14 of the
Punjab Land Revenue Act 1967 (XVII of 1967), shall apply to the cases under
this section.
(24) 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).
(25) 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.
(26) The proceeds of the tax collected under this
section shall be credited to the Provincial Consolidated Fund under the head
specified by the Government.
(27) The Board of Revenue may, by notification in
the official Gazette, make provisions relating to the collection and recovery
of the tax or regarding any ancillary matters.
(28) The Government may, by notification in the
official Gazette, exempt a class of immovable property or a class of persons or
a mode of transfer of property from the levy or recovery of the tax subject to
such conditions as may be specified in the notification.
7. Amendment in Act XV of 2011.– In the
(a) in section 6–
(i) for sub-section (1), the following shall be substituted and shall be deemed to have always been so substituted–
“(1) This section shall have effect, notwithstanding anything
contained in any other law.
(1A) The provisions of this section shall not apply
to the rating areas in terms of the Punjab Urban Immovable Property Tax Act,
1958 (V of 1958) where
the property tax is levied but shall apply to the rating areas which are zero
rated in terms of section 117 of the Punjab Local Government Ordinance, 2001 (XIII of 2001).”
(ii) in sub-section (2), in clause (c), the full stop shall be
replaced by a semi-colon and the following new clause shall be inserted:-
“(d) “total minimum area” means the total land area including the area under farming even though the farm house is constructed on a portion of such area of land.”;
(b) in section 7–
(i) in sub-section (2), for clauses (b) and (c), the following shall be substituted:-
“(b) “amenities” include facilities of sports, swimming, gymnasium, fitness, conferences, ceremonies, musical concerts and other social amenities;
(c) “club” means an association or organization offering members
amenities, services, meals or temporary residence with initial membership fee
of rupees two hundred thousand for any category of members and notified as club
by the Government;
(d) “initial membership fee” includes all subscriptions or payments, charges, donations made by an applicant for membership of the club;
(e) “Government” means Government of the
(f) “services” means all types of services provided by the club and includes goods sold at the club premises.”;
(ii) after sub-section (3), the following shall be inserted:-
“(3A) Notwithstanding any reduction of initial membership fee after the club has been notified under sub-section (2), the club shall remain notified and the cess under this section shall continue to be levied on such club.
(3B) If a club is notified for purposes of
this section, the cess shall be levied on actual
initial membership paid by the applicant.
(3C) The cess shall
be levied on the services provided to any person or a member regardless of the
date of membership.”
[1]This Act was passed by the
Punjab Assembly on 21 June 2012; assented to by the Governor of the