How to Create a Payment Challan for Property Tax for Overseas?

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How to Create a Payment Challan for Property Tax for Overseas?

Steps to Generate Online Tax Challan for Tax Relief

1. Visit the FBR Website:
   
   • Navigate to the FBR e-Services Portal.
   • Select the IRIS (Income and Revenue Information System) option.
2. Create Payment for Property Tax:
   
   • Click on the “Create Payment” tab.
   • Choose “Tax on Immovable Property” from the menu.
3. Fill in the Required Forms:
   
   • Particulars Section:
     
     • Enter your details as a non-resident (select “Non-Resident”.
     • Provide your NICOP/POC number.
   • Property Details:
     
     • Specify the property (e.g., plot size, location).
     • Select the relevant authority (e.g., DHA, Punjab Housing Authority).
   • Valuation:
     
     • Add the assessed property value. Ensure accuracy as overvaluation can lead to higher taxes.
   • Attachment:
     
     • Upload your proof of overseas identity (e.g., POC copy).
4. Submit the Challan:
   
   • After filling in all sections, click Submit to generate the payment challan.
   • Use the generated challan to pay the tax through authorized banks.
5. Provisional PSID Generation:
   
   • Upon submission, the system generates a provisional psid for the case.
   • This PSID is forwarded to the CCIR (Chief Commissioner Inland Revenue).
6. Verification Workflow:
   
   • The CCIR assigns the case to the relevant CIR (Commissioner Inland Revenue).
   • The CIR verifies the taxpayer’s non-resident status and the authenticity of the uploaded documents.
7. Approval or Rejection:
   
   • If satisfied with the verification, the CIR approves the case, granting the exemption to the taxpayer.
   • If the CIR finds discrepancies, the exemption may be denied.
8. Time Frame:
   CCIRs are required to process the verification on priority basis within one business day.
9. Notification to Taxpayer:
   
   • Once the case is decided, the taxpayer is notified via SMS and email about the outcome.
   • If approved, the exemption under Clause 111AC is applied to the CPR, enabling the taxpayer to proceed with the transaction without the relevant tax deduction.

Related Article: Overseas Pakistanis Rates of Advance Tax Reduced on Property

Key Tax Rates for Overseas Pakistanis

1. Purchasing Property:
   
   • Filer: 3% tax on properties.
   • Late Filer: Previously 6%; now reduced to 3%.
   • Non-Filer: Previously 10%; now reduced to 3%.
   • Rates vary for properties valued over PKR 5 crore and 10 crore, depending on valuation brackets.
2. Selling Property:
   
   • Filer: 3% tax.
   • Late Filer: 6%.
   • Non-Filer: Previously 12%; now reduced to 3% (aligned with filers).

   Note: The reductions are meant to equalize the tax rates for overseas Pakistanis, irrespective of filer status.

FAQs

1. Who Can Benefit from These Reduced Rates?

• Overseas Pakistanis, whether they are filers, late filers, or non-filers, can benefit from these equalized rates.

2. Why Are Rates Aligned for All Categories?

• To encourage overseas investment in real estate and provide ease of compliance, the government aligned the tax rates for property transactions for overseas Pakistanis.

3. Do I Need to File Tax Returns to Avail  These Rates?

• No. The rates apply uniformly regardless of filing status for overseas Pakistanis.

4. Do I need to be Registered with FBR?

• No. The rates apply uniformly regardless of Registeration status for overseas Pakistanis.

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