PUNJAB FINANCE ACT 2013

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THE PUNJAB FINANCE ACT 2013  
(XVI of 2013) 
CONTENTS 
1. Short title, extent and commencement 
2. Amendment in Act V of 1958 
3. Amendment in Act X of 1958 
4. Amendment in Act XXXII of 1958 
5. Amendment in Act I of 1972 
6. Amendment in Act I of 1997 
7. Amendment in Act VI of 2010 
8. Amendment in Act XV of 2011 
9. Capital gains tax on immovable property 
10. [Omitted] 
TEXT 
1
THE PUNJAB FINANCE ACT 2013 
(XVI of 2013) 
[29th June, 2013] 
An 
Act 
to levy, alter and rationalize certain taxes, fees and duties in the Punjab. 
Preamble.– Whereas it is expedient to levy, alter and rationalize certain taxes, fees 
and duties in the Punjab and regulate the matters connected therewith; 
It is enacted as follows:– 
1.  Short title, extent and commencement .– (1) This Act may be c ited as the 
Punjab Finance Act 2013. 
(2)  It shall extend to the whole of the Punjab. 
(3)  It shall come into force on the first day of July 2013 except the 
provisions of clause (a) of section 2 and section 5 which shall come into force on the 
first day of January 2014, and p rovisions of section 9 shall come into force on such 
date as the Government may, by notification, specify. 
2. Amendment in Act V of 1958 .– In the Punjab Urban Immovable Property 
Tax Act, 1958 (V of 1958)– 
2
[(a) * * * * * * * * * * *   ] 
(b) in section 4, for clause (i), the following shall be substituted:– 
“(i) one residential house, measuring an area not exceeding  five 
marlas, used for residential purpose  except a residential house 
with annual value of more than five thousand rupees situated in 
a part of a rating area which is category A area.” 
3. Amendment in Act X of 1958.– In the Punjab Entertainments Duty Act, 1958 
(X of 1958), for section 3-A, the following shall be substituted:– 
“3-A.  Duty on special cla sses of entertainment .– Notwithstanding 
anything contained in section 3, the duty on the entertainments mentioned in  
column No. 2 of the following T able shall be charged at the rate mentioned 
against each entertainment in column No.3:– 
 
                                                 
1This Act was passed by the Punjab Assembly on 27 th June 2013; assented to by the Governor of the Punjab on 29 th June 
2013; and published in the Punjab Gazette (Extraordinary), dated 29th June  2013, pages 3075-3078. 
2Omitted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.7; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2014, pages 4169-4178. 
Sr. 
No. 
Entertainment Rate of duty 
1. Admission to 
horse racing 
Two hundred percent of the payment for admission 
or two hundred rupees per admission ticket, 
whichever is higher. 
2. Circus No duty 
3. Fashion show  Twenty percent of the total amount paid to the 
owner or management of the premises or total 
expenditure made by organizer or sponsor, 
whichever is higher.   
4. Musical show Twenty percent of the payment for admission in a 
musical show where admission charges are five 
hundred rupees per person or more.” 
4. Amendment in Act XXXII of 1958 .–  In the Punjab Motor Ve hicles Taxation 
Act, 1958 (XXXII of 1958), in section 4, for subsection (2) , the following shall be 
substituted:– 
“(2) A person keeping a motor vehicle shall pay the tax as follows:–  
Sr.# Tax period Date of payment 
1. For the first quarter of a financial year Before the 31st day of July 
2. For the second quarter of a financial 
year 
Before the 31 st day of 
October 
3. For the third quarter of a financial year Before the 31 st day of 
January 
4. For the fourth quarter of a financial year Before the 30th day of April 
5. For the whole of a financial year Before the 1 st day of 
October 
6. For the entire life of the motor vehicle  At the time of registration 
of a motor vehicle or before 
the 1 st day of September 
2013 
(2a) If a person commences to keep a motor vehicle for use, he shall 
pay the tax before the expiration of twenty one days from the day when he 
commences to keep the motor vehicle for use.” 
5. Amendment in Act I of 1972.– In the Punjab Finance Act, 1972 (I of 1972), 
section 9 shall be omitted. 
6.  Amendment in Act I of 1997 .–  In the Punjab Agricultural Income Tax Act 
1997 (I of 1997), after section 3A, the following section shall be inserted:– 
“3B. Tax on the basis of income tax return .– Notwithstanding the 
provisions of section 3, where any person has declared agricultural income for 
any assessment year in the return filed under the Income Tax Ordinance, 
2001 (XLIX of 2001) , the person shall pay the tax on such income at the rate 
specified in the Second Schedule.” 
7. Amendment in Act VI of 2010 .– In t he Punjab Finance Act 2010 (VI of 
2010), in section 6, in subsection (5), for clause (a), the followi ng shall be 
substituted:  
“(a) Immovable p roperty, other than comme rcial or industrial property,  a 
plaza or multi-storeyed building, situated in urban area and the value of 
which exceeds one million rupees: 
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.”  
8. Amendment in Act XV of 2011 .– In the Punjab Finance Act 2011 (XV of 
2011), in section 7, in subsection (2), for clause (c), the following shall be 
substituted:   
“(c) “club” means an association or organization offering members 
amenities, services, meals or temporary residence with initi al 
membership fee of two hundred thousand rupees for any category of 
members and notified as club by the Government but does not include 
fitness centre or  gymnasium without provision of ancillary services of 
eateries, outdoor sports, conferences, ceremonie s, musical concerts or 
any other such service;”. 
9. Capital gains tax on immovable property .– (1) This section shall have 
effect notwithstanding anything contained in any other law.   
(2) For purposes of this section– 
(a) “acquisition” means transfer of pr operty through any mode including 
gift, bequest, will, succession, inheritance, devolution, dissolution of an 
association of persons or, winding up or liquidation of 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 the 
Collector; 
(d) “Government” means Government of the Punjab;  
(e) “person” includes– 
(i) an individual; 
(ii) an association of persons; 
(iii) a company; 
(iv) a body corporate; 
(v) a foreign government; 
(vi) a political subdivision of a foreign government; and 
(vii) a public international organization; 
(f) “recorded value” means the value declared by the transfer or 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; and 
(g) “tax” means capital gains tax on sale of an immovable property and 
includes any penalty, fee and charge or any sum or amount leviable or 
payable under this section. 
(3)  A gain occurring from the sale of immovable property by a person in a 
tax year shall be chargeable to tax in that year at the following rate:– 
Sr. No. Description Rate  
1. Sale within one year of 
acquisition 
5% of the capital gain or 2% of 
the recorded value at the time 
of sale, whichever is higher 
2. Sale between more than one but 
within two years of acquisition 
4% of capital gain 
3. Sale between more than two but 
within three years of acquisition 
3% of capital gain 
4. Sale between more than three 
but within four years of 
acquisition 
2% of capital gain 
5. Sale between more than four but 
within five years of acquisition 
1% of capital gain 
6. Sale after five years of 
acquisition 
No tax. 
(4) The Collector shall determine the capital gain throu gh calculating 
difference in valuation at the time of acquisition and sale on the basis of valuation 
table notified by the Collector of the district under section 27 -A of the Stamp Act, 
1899 (II of 1899) or the recorded value in the transfer deed, whichever is higher. 
(5) The Collector shall assess and collect  the tax, and for this purpose, 
may exercise any power of the Collector under section 6 of the Punjab Finance Act 
2010 (VI of 2010). 
(6) For purposes of appeal, review or revision, an order passed unde r 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). 
(7) 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  within one year 
of the payment of the tax. 
(8) The Board of Revenue may, by notification in the official Gazette, make 
provisions relating to the collection and recovery of the tax or for ancillary matters. 
(9) The Government may, by notification in the official Gazette, exempt a 
class of immovable property or a class of persons from the levy or recovery of the 
tax subject to such conditions as may be specified in the notification. 
3
[10.  Luxury tax on houses.–* * * * * * * * *   ] 
 
                                                 
3Omitted by the Punjab Finance Act 2014 (XVII of 2014), w.e.f.1.7.2014, s.7; and published in the Punjab Gazette 
(Extraordinary), dated 26.6.2014, pages 4169-4178.