PUNJAB FINANCE ACT 1986

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THE PUNJAB FINANCE ACT , 1986 
(IV of 1986) 
CONTENTS 
1. Short title, extent and commencement 
2. Amendment of Stamp Act 1899 (II of 1899)  
3. Repeal of section 16 of Act IX of 1963 
 
TEXT  
1
THE PUNJAB FINANCE ACT , 1986 
(IV of 1986) 
[14th June, 1986] 
An 
Act 
to continue and levy certain taxes and fees in the Province of the Punjab  
Preamble.– WHEREAS it is expedient to continue and levy certain taxes and fees in 
the Province of the Punjab; 
It is hereby enacted as follows:– 
1. Short title, extent and commencement. – (1) This Act may be called the 
Punjab Finance Act, 1986. 
(2) It extends to whole of the Province of the Punjab. 
(3) It shall come into force at once. 
2. Amendment of Stamp A ct 1899 (II of 1899). – In the Stamp Act, 1899 (II of 
1899)– 
(i) after the existing Section 27, the following new Section 27 -A shall be 
added:– 
“27-A. Valuation of Urban Land – (1) Where any instrument 
chargeable with ad valorem duty under sub -article (b) of  article 23 or 
sub-article (b) of article 31 of Schedule 1, relates to land only or land 
with any building or structure thereon, the value of the land shall be 
calculated according to the valuation table notified by the Collector in 
respect of land situated in the area or locality concerned. 
(2) Where an instrument, mentioned in sub -section (1), 
relates to land with building or structure thereon, it shall state the value 
of the land and the building or structure separately and the value of the 
building or s tructure so stated shall, subject to the provisions contained 
in this Act, be accepted. 
(3) Where the value of land stated in an instrument to which 
sub-section (1) applies is more than the value fixed according to the 
valuation table, the value declared i n the instrument shall be accepted 
as value for the purposes of duty. 
(4) Where the value given in the valuation table notified 
under sub -section (1), when applied to any land, appears to be 
excessive, the Commissioner may, on application made to him by th e 
                                                                 
1This Act w as passed by the Punjab Assembly on 5th June, 1986; assented to by the Governor of the Punjab on 14th June, 
1986; and, w as published in the Punjab Gazette (Extraordinary), dated 14th June, 1986, Pages 1307-1310. 
aggrieved person, determine its correct value and for that purpose the 
provisions of section 31 and section 32 shall apply mutatis mutandis.” 
(ii) In Schedule 1, for article 23, the following shall be substituted:– 
“23. CONVEYANCE as defined by section 
2(10) not being a TRANSFER charged or 
exempted under No.62 – 
 
 (a) In case of agricultural land:  Rupees four for every rupees one 
hundred or part thereof of the value of 
the land. 
 (b) In case of immovable 
property in an urban area:  
Rupees eight and a half  for every 
rupees one hundred or part thereof of 
the value of the property. 
 (c) In any other case:  Rupees five and a half for every rupees 
one hundred or part thereof of the value 
of the property. 
Explanation I. – For the purpose of sub -article (b)– 
(1) “urban areas” shall mean – 
(i) an area specified by Government under section 3 of the 
Punjab Urban Immovable Property Tax Act, 1958; and  
(ii) any built up area including land situated within or adjoining 
such area, specified by notification by the Govern ment to be 
an urban area for the purpose of this clause.  
Explanation. – For the purpose of sub-clause (ii), “built up area” shall mean land which is 
occupied as site of a building or enclosure and is not used for agricultural purpose or a 
purpose subservient to agriculture. 
(2) Duty chargeable in respect of instruments relating to property in an 
urban area specified by the Government under clause (1) shall be effective from the date 
such area is specified as urban area. 
Explanation II .– Any reference in S chedule 1 to article 23 shall mean a reference to 
sub-articles (a) and (c) only.”  
(iii) in Schedule 1, for article 31, the following shall be substituted– 
“31. EXCHANGE OF PROPERTY– Instrument of– 
 
(a) When executed in respect of 
agricultural land: 
One r upee for every rupees 
one hundred or part thereof of 
the value of the property.  
(b) When executed in respect of 
immovable property in an urban area 
as defined in No.23: 
Rupees eight  for every rupees 
one hundred or part thereof of 
the value of the property . 
(c) In any other case:  Rupees five for every rupees 
one hundred or part thereof of 
the value of the property.”  
3. Repeal of section 16 of Act IX of 1963. – Section 16 of the Punjab Finance 
Act, 1963 (IX of 1963) is repealed.