Overview
For real estate investors, it is mandatory to understand the policies that assist you in making smooth transactions. Furthermore, it is essential to understand the DC Rate and Valuation policy of immovable properties. Thus, the DC Valuation policy calculates the Stamp Duty and Capital Value Tax (CVT) for immovable properties.
In detail, we have discussed the DC Rate and Valuation table for property in Islamabad.
DC (District Collector) Rate – DC Rate and Valuation Table for Property in Islamabad
Regarding the DC Rate, the provincial governments collect the Stamp Duty and Capital Value Tax (CVT) from the District Collector. According to Section 27-A of the Stamp Duty (1899), the duty on the immovable property is charged by the property’s value. Furthermore, the duty on the immovable property is charged for the valuation of the property at the DC-informed rate.
Property DC Valuation
Property DC Valuation determines stamp duty and capital value tax (CVT) on immovable property. This system came into being a few years back when the Government could not track transactions in the real estate market. This fixed DC rate collects taxes by the property values in the DC Valuation table. In line with the Stamp Act (1899), the stamp duty on the property will be charged by the property’s value.
Objectives to Adopt DC Rates
During the 1980s, the DC rates were implemented at the time of mutation with the following objectives;
- To maximize the tax revenue
- To control price fall
- To make the sector more efficient
What characteristics of properties does the DC announce when valuing them?
These characteristics of properties include;
- Location: District, Tehsil
- Category: Urban, Rural
- Nature of the land: The classification of land (Residential, Commercial)
How many property rates are operating in the Market?
Three types of property rates are operational in the Market, including
- The DC Rate
- FBR (Federal Board of Revenue) immovable property valuation
- The Market Rate
E Stamp DC Valuation in Punjab
For the Property DC Valuation, first of all, you will have to fill out the 32-A challan at the website www.es.punjab.gov.pk. Once you click this website, the challan will be in front of you. This challan has four sections, each different from the others. In the first section, you shall provide the essential information. In the second section, you will offer details on the deed. The DC Valuation section will appear after delivering critical information and deed details.
To calculate the DC Valuation, you will have to fill the form by the categories, including;
- Land category
- Urban properties
- Rural properties
- Add District
- Add Tehsil
- Select Revenue circle
- Select Property Area
- Choose Land Classification
- Residential properties
- Commercial properties
- Add Land Area:
- Marla for Urban Area
- Acre for Rural Area
- Find Land Rate (Based on Provided Information)
- DC Rate per Marla shall be shown
- Land Value (DC) shall be calculated by the system based on DC rates that exist in the system.
- Land Value shall be exhibited.
Presently, for the rural immovable properties the provincial governments charge stamp duty at a rate of 3%. Furthermore, for the urban properties, the local governments charge Stamp Duty at a rate of 1%.
How to Calculate Property DC Valuation? - DC Rate and Valuation Table for Property in Islamabad
For the calculation of DC Value, you will have to land on the official website of the E-Stamping, and you will find the section Calculate DC Valuation. Open this link, and the page will appear like this.
To calculate the DC value, fill out this form for each section. Once you fill all the sections, the DC Rate, DC Sq. ft. rate and Land Value (DC) will be displayed.
For your convenience, we have filled out this form and provided details for each section. For instance, we have selected Rawalpindi District. Let’s come to know DC Rate, DC Sq: ft: rate, and Land Value.
The picture above-provided information on calculating the DC rate and land valuation (DC). The provided information includes;
- Land Type: Urban Area
- District: Rawalpindi
- Tehsil: Rawalpindi
- Town or City: Cantonment – Rawalpindi
- Revenue Circle: Rawalpindi Cantt.
- Floor: Un-Constructed
- Property Area: Askari – I
- Land Classification: Residential
- Location: Off-Road
- Total Land Area: 1 Marla
After providing all the information, we learned about DC Rate and DC Value.
- DC Rate per Marla in Askari – I Rawalpindi: 1,200,000 Per Marla
- DC Per Square Feet Rate: 920 Per Square Feet
- Land Value (DC): 1,200,000
Here, you can see how we can calculate the DC Rates, DC Sq. ft. rate and Land Valuation. In the same way, you can quickly figure out the DC rate and valuation according to the information you provided.
If you want to know the whole procedure, please click the E-Stamping _ User Guide link.
What is the Property DC Valuation System in Pakistan?
Two categories of property valuation systems have been operating in Pakistan: DC Valuation and FBR Valuation. There was a valuation gap between the DC rate and the market rate; keeping this scenario in mind, in 2016, FBR initiated the preparation of issuing of the valuation of immovable property for several cities in Pakistan.
On the other hand, FBR Valuation and DC rates are lower than the market rate. The market rate is higher 5 to 10 times than DC rate, while 2 to 4 times higher than the FBR rate.
How many taxes apply to real estate transactions?
Two government bodies are included in the collection of taxes: the Provincial Government and the Federal Government.
Provincial Government collects capital value tax (CTV) and Stamp Duty whereas Federal Government collects the withholding tax and capital gain tax.
Difference in DC and FBR Valuation Rates – DC Rate and Valuation Table for Property in Islamabad
FBR and DC Valuation Rate Askari Rawalpindi
Land Area | Residential DC Rate (Per Marla) | Residential FBR Rate (Per Marla) |
Askari – I | 1,200,000 | 1,100,000 |
Askar – II | 1,200,000 | 1,100,000 |
Askari – III | 1,200,000 | 1,100,000 |
Askari – IV | 1,200,000 | 1,100,000 |
Askari – V | 1,200,000 | 1,100,000 |
Askari – VI | 1,200,000 | 1,100,000 |
Askari – VII | 1,200,000 | 1,100,000 |
Askari – VIII | 1,200,000 | 1,100,000 |
Askari – IX | 1,200,000 | 1,100,000 |
Askari – X | 1,200,000 | 1,100,000 |
Askari – XI | 1,200,000 | 1,100,000 |
Askari – XII | 1,200,000 | 1,100,000 |
Askari – XIII | 1,200,000 | 1,100,000 |
Askari – XIV | 1,200,000 | 1,100,000 |
Askari – XV | 1,200,000 | 1,100,000 |
Valuation of Immovable Residential and Commercial Property
City Name | Property FBR Valuation |
Rawalpindi | |
Lahore | |
Peshawar | |
Islamabad | |
Gwadar | |
Quetta | |
Faisalabad | |
Multan | |
Gujranwala | |
Mandi Bahauddin | |
Bahawalnagar | |
Bahawalpur | |
Attock | |
Abbottabad | |
Jhelum | |
Sargodha | |
Dera Ismail Khan | |
Dera Ghazi Khan | |
Sialkot | |
Rahim Yar Khan | |
Hafizabad | |
Jhang | |
Kasur | |
Gujrat | |
Khushab | |
Larkana | |
Lasbela | |
Mardan | |
Mirpurkhas | |
Narowal | |
Mansehra | |
Hyderabad | |
Haripur | |
Ghotki | |
Nankana Sahib | |
Sahiwal | |
Chakwal | |
Toba Kek Singh | |
Sukkur | |
Sheikhupura |
Conclusion
There is a difference between the government prices and the market prices, and because of this reason, the investors escape from paying taxes. To avoid this practice, the Government should set the rates according to the market rates. Furthermore, the Government should introduce a system for investors to make real estate transactions more transparent.
Orion Enterprises understands the importance of Property DC Rate and Valuation. Thus, we have covered this topic in detail for your convenience.
Waseem Ali chose writing as his career after completing his M.Phil. in Communication Studies from Communication University of China (CUC). With a research-oriented approach, he currently works as a research content writer with us. He enjoys research, insightful studies, and traveling.