Rawalpindi’s Board of Revenue Registration Branch has issued a gazette notification detailing revised property tax rates, officially reinstating the suspended online property registration system. The updated tax framework comes after a three-week halt in registry operations, which had impacted real estate transactions across the city. With the new rates in effect, property documentation and ownership transfers have resumed, offering clarity to buyers, sellers, and real estate professionals navigating the revised fiscal landscape.
According to the official notification, capital gains tax on property sales calculated on the DC rate value has been significantly modified across multiple valuation brackets. For properties valued up to Rs50 million, active filers are now liable to pay 4.5%, up from the previous 3%. Late filers face a tax of 7.5%, increased from 6%, while non-filers are subject to an 11.5% rate, reflecting a continued policy effort to incentivize timely and documented tax filing.
For transactions involving properties between Rs50 million and Rs100 million, active filers will pay a 5% capital gains tax, while late filers will be charged 8.5%. Properties priced above Rs100 million will carry a capital gains tax of 5.5% for all eligible taxpayers, indicating a standard rate for high-value transactions beyond this threshold.
In parallel to the changes in capital gains tax, the advance tax applied to property buyers has also been revised to reflect updated economic conditions and compliance objectives. For properties up to Rs50 million, the advance tax for active filers has been reduced to 1.5%, a drop from the earlier 3%, while late filers will now pay 4.5%, compared to the previous 6%. Non-filers, however, will see a tax rate of 10.5%, maintaining a higher charge for non-compliance.
For property values between Rs50 million and Rs100 million, active filers will be charged an advance tax of 2%. Those who file late will now pay 5.5%, while non-filers will incur a considerably higher 14.5% rate. On properties exceeding Rs100 million in value, active filers will be charged 2.5%, while late filers will pay 5.5%. These adjustments are designed to align with tax documentation efforts and to close valuation gaps in property sales across tiers.
The return of the online registration platform is expected to streamline real estate procedures once again, enabling digital processing of ownership records, transaction filings, and registry updates. The system’s reinstatement follows concerns among stakeholders over delays in real estate transactions due to the suspension. The revised tax regime now governs all new registrations and is a step towards improved transparency in property dealings across Rawalpindi.
