Stamp Duty and CVT Rates in Sindh for 2026

Stamp duty on a property conveyance in Sindh is charged at 2% of the value as per the official valuation table, and Capital Value Tax (CVT) ranges from 2% to 3% for residential properties depending on plot size. Both are payable at the time of registering a property transaction, and together they form the two most significant transaction costs on any property sale, transfer, lease, or mortgage in Sindh.

What Are Stamp Duty and CVT and Why Both Apply

When property changes hands in Sindh, two separate charges apply at the same time. Stamp duty is levied under the Stamp Act 1899 as applicable in Sindh, while CVT (Capital Value Tax) is levied under Section 4 of the Sindh Finance Act 2010. These are not interchangeable. Both are calculated independently and both must be paid before a transaction can be registered.

Understanding how stamp duty works in Pakistan and how it interacts with CVT is essential before you enter into any property purchase, transfer, or lease agreement in Sindh. Paying one without the other results in an incomplete registration, which creates legal complications later.

Stamp Duty Rates on Conveyance and Transfer of Property

Conveyance, meaning the formal transfer of immovable property through a sale deed or similar instrument, is the most common transaction for which stamp duty is paid. Under Article 16 of the Sindh Stamp Schedule, the rates are as follows.

• For all standard conveyances, the stamp duty is 2% of the value as determined by the Board of Revenue’s valuation table
• For conveyances to or from Real Estate Investment Trusts (REITs), the duty is 2% per valuation table or 0.25% of the actual transaction value, whichever is higher
• For a transfer of lease by way of assignment, the rate is 2% of the consideration or valuation table value, whichever is higher

The operative principle is that duty is always charged on whichever is greater: the declared sale price or the government’s official valuation table figure for that area. Understating the sale price to reduce stamp duty does not work if the valuation table value is higher.

Stamp Duty Rates on Lease Agreements

Lease transactions in Sindh carry their own stamp duty structure under Article 21 of the Schedule, and the rate depends on the type and nature of the lease.

For open plots, flats, shops, offices, town houses, and bungalows where the valuation table applies, the stamp duty is 1% of the value per the valuation table. For the surrender of a lease, sub-lease, or pre-lease of built-up or open property in urban areas, the rate rises to 2% of the value per the valuation table.

Leases that do not fall under these categories, such as agricultural or rural lease arrangements, attract 1.5% of total rent payable under the lease plus 2% on any premium paid upfront. Leases involving REITs are charged at 1% per valuation table or 0.25% of market value, whichever is higher.

Stamp Duty on Mortgage Deeds

Mortgage transactions also carry stamp duty in Sindh, and the rate depends on whether physical possession of the property is transferred to the lender or not. This distinction matters because it changes the applicable duty under Article 23.

• Where possession is given to the mortgagee: 3% of the amount secured
• Where possession is not given: 2% of the amount secured
• For mortgage deeds or financing instruments based on interest (Article 23-A): 1% of the entire loan amount
• For hypothecation of moveable property not based on interest: 0.2% of the loan amount

This is an important cost to factor in when taking a bank loan secured against property in Sindh, as 1% of the loan amount on a Rs. 5 million mortgage comes to Rs. 50,000 in stamp duty alone before other charges apply.

Stamp Duty on Gift, Power of Attorney and Other Instruments

Beyond sale and mortgage, several other property-related instruments carry specific stamp duty rates in Sindh. These are commonly used in estate planning and family transfers.

Gift (Article 20)

• Gift to a person other than a legal heir: 2% of the property value per valuation table
• Gift confirmed by affidavit to a close family member (spouse, parent, child, grandparent, sibling): one-fifth of the conveyance duty, effectively 0.4% of valuation table value

Power of Attorney (Article 27)

• For registration of documents in a single transaction: Rs. 100
• For a single transaction other than registration: Rs. 200
• Up to five persons acting in multiple transactions: Rs. 500
• Six to ten persons acting jointly in multiple transactions: Rs. 1,000
• With consideration, authorizing sale of immovable property: 3% of valuation table value or consideration, whichever is higher
• Without consideration, authorizing sale of immovable property: Rs. 5,000

Partition (Article 25): 1% of the value of the separated share or shares

Release (Article 29): 2% of the value of the property per valuation table

Settlement (Article 30):

• For religious or charitable purposes: 4.5% of the value of property settled
• In any other case: 2% per valuation table for immovable property, or 5% of the value of moveable property settled

Stamp Duty Rates on Allotment Orders

Allotment orders and transfer allotment orders issued by developers, housing societies, or housing authorities before a lease is issued carry a fixed per-square-yard or per-square-foot duty under Article 4.

Open Plots:

Built-Up Property:

Understanding how covered area differs from total area is important here, particularly for flats and built-up units, since the stamp duty on built-up property is applied to covered area measurements.

CVT Rates Under the Sindh Finance Act 2010

Capital Value Tax is levied under Section 4 of the Sindh Finance Act 2010 on the capital value of immovable property at the time of acquisition. It is separate from stamp duty and is also collected at the time of registration.

A. Residential Property (Non-Flat) in Sindh

Where the property value is recorded or the valuation table value applies, whichever is higher:

Where the property value is not recorded: Rs. 75 per square yard of landed area.

B. Residential Flats in Sindh

Where the property value is recorded or valuation table applies, whichever is higher:

Where the value is not recorded: Rs. 10 per square foot of landed area.

C. Commercial and Industrial Property in Sindh

• Where the value is recorded or valuation table applies: 2.5%
• Where the value is not recorded: Rs. 100 per square yard of landed area

CVT on REIT transactions is charged at the applicable CVT rate under Section 4 or 0.5% of market value, whichever is higher.

The Valuation Table and How Property Categories Work in Karachi

The Board of Revenue’s valuation table assigns each area of Karachi to one of seven categories from A-I (highest) to VI (lowest). The minimum values per category govern the base on which both stamp duty and CVT are calculated.

These values are the floor. If your actual sale price is higher, duty is charged on the actual price. If the valuation table figure is higher, duty is charged on that. The Provincial Board of Revenue notifies revisions to this table periodically.

Which Areas of Karachi Fall in Which Category

The Sindh Board of Revenue notification places different localities of Karachi into each category. Some key placements:

• Category A-I: DHA Phase I, II, III and V; KDA Scheme 1 and 1A; Clifton Quarters; Civil Lines Quarters; Sindhi Muslim Cooperative Housing Society; Pakistan Employees Cooperative Housing Society; Dhoraji Cooperative Housing Society; Garden East Quarters; Karachi Administrative Cooperative Housing Society
• Category I: DHA Phase IV, VI and VII (excluding extension); Gulshan-e-Iqbal Block 17; Gulshan-e-Faisal; North Nazimabad (excluding Blocks P, Q, S and T); Bath Island; Jamshed Quarters; Depot Lines; Federal B. Area (commercial)
• Category II: Federal B. Area (residential); Gulshan-e-Iqbal (excluding Block 17); Nazimabad; Gulistan-e-Jauhar; National Cement Employees Cooperative Housing Society; Lawrance Quarters
• Category III: Shah Faisal Town; Shireen Jinnah Colony; Baloch Colony; Khaliquzaman Colony; P.I.B. Colony; Drigh Cantonment; Malir Cantonment; Model Colony
• Category IV: DHA Phase VII extension and VIII; Liaquatabad; Gulshan-e-Hadeed; North Karachi Sectors 1 to 6; Qasimabad; Saeedabad; Landhi Township
• Category V: Korangi Township; Malir City; Orangi Town; Old Golimar; U.P. Mahajireen Society; Qasba Colony; Surjani Town (some sectors)
• Category VI: Government-approved Katchi Abadis; Baldia Town; Muhajir Colony; Shah Latif Town (KDA Scheme 25); Surjani Town remaining sectors; Mangho Pir Road adjacent areas; Liaquat Ashraf Colony (residential)

Confirming your area’s category before calculating any transaction cost is essential, since misidentifying the category can lead to significant under or over-estimation of total charges. The functions of the Board of Revenue include maintaining and revising these area valuations.

How to Calculate Total Transaction Cost on a Property Sale

Putting stamp duty and CVT together on a practical example helps illustrate the total liability. Take a 400 sq.yd residential plot in a Category II area of Karachi being sold for Rs. 8,000,000.

• Step 1 – Determine applicable value Valuation table minimum for Category II residential: Rs. 6,600 per sq.yd × 400 = Rs. 2,640,000. Since the actual sale price of Rs. 8,000,000 is higher, this is used for calculations.
• Step 2 – Calculate Stamp Duty 2% of Rs. 8,000,000 = Rs. 160,000
• Step 3 – Calculate CVT Plot is 400 sq.yd, falling in the 240-499 sq.yd bracket: 2% of Rs. 8,000,000 = Rs. 160,000
• Total transaction tax liability = Rs. 320,000 (excluding registration fee and other charges)

This is why understanding both charges together matters before signing a sale deed or committing to a price. The buyer typically bears both stamp duty and CVT, making the true cost of acquisition higher than the negotiated sale price.

Who Pays and How CVT Is Collected

CVT is payable by every individual, association of persons, firm, development authority, or company that acquires immovable property in Sindh by purchase, gift, exchange, power of attorney (other than revocable and time-bound ones between immediate family), surrender, or relinquishment of rights, or by obtaining a right to use the property for more than 20 years.

Inheritance is specifically excluded from CVT, meaning property received through inheritance does not trigger a CVT payment. Gifts between spouse, parents, grandparents, children, siblings, and grandchildren are also exempt from CVT, though inheritance mutation proceedings are still required to update the revenue record.

The CVT is collected by the person responsible for registering or attesting the transfer at the time of registration. If the registering officer fails to collect it, they become personally liable for the uncollected amount.

Exemptions and Special Cases

Not every transaction attracts the full stamp duty. The Sindh Stamp Schedule contains several exemptions worth knowing.

• Deed of dower executed on the occasion of a Muslim marriage is exempt from settlement duty
• Transfer of agricultural land under Land Improvement Loan instruments by borrowers and sureties is exempt from mortgage bond duty
• Transfers between related companies where one holds at least 90% of the issued share capital of the other are entitled to a remission of conveyance stamp duty, subject to a certificate from the relevant authority

For any transaction involving registered documents, verifying the e-stamp paper and its authenticity before payment is a practical safeguard against fraud, since stamp papers themselves can be forged.

Stamp Duty vs Registration Fee vs CVT

These three charges are frequently confused with each other, and it helps to state clearly what each one is.

Stamp duty is the tax on the instrument itself, calculated as a percentage of the property value. Registration fee is a separate charge paid to the Sub-Registrar for the act of registering the document under the Registration Act 1908. CVT is an acquisition tax on the capital value of the property changing hands. All three are distinct and all three typically apply to the same transaction.

Understanding the difference between property registry and mutation also clarifies that stamp duty and registration fee are paid at the time of registry with the Sub-Registrar, while mutation is a separate revenue process that follows after registration and does not carry its own stamp duty charge.

Frequently Asked Questions

Is stamp duty paid by the buyer or the seller in Sindh

Under Section 29 of the Stamp Act, the stamp duty on a conveyance is borne by the vendee or transferee, meaning the buyer. The seller is not responsible for stamp duty on the sale deed. Both parties are however jointly responsible for ensuring the document is properly stamped before registration.

Can stamp duty be paid online in Sindh

Yes, the Sindh Board of Revenue has digital payment channels through which stamp duty and CVT can be paid electronically. The payment generates a challan that must accompany the registration documents. Knowing how to pay property tax online in Sindh helps navigate the same digital systems used for stamp duty payment.

Is CVT the same as stamp duty

No, these are two separate levies. Stamp duty is under the Stamp Act 1899 and CVT is under the Sindh Finance Act 2010. They are calculated separately and both must be paid at registration. Stamp duty covers the instrument, while CVT is a tax on the capital value of the acquisition.

Does CVT apply on inherited property

No. CVT explicitly excludes property acquired through inheritance from its scope under Section 4 of the Sindh Finance Act 2010. However, the inheritance mutation must still be completed to transfer the revenue record, and legal heirs should complete steps to properly document land ownership even when no tax is due.

What happens if stamp duty is underpaid

An instrument that is insufficiently stamped cannot be admitted as evidence in any court and cannot be acted upon by any public officer until the deficient duty along with a penalty is paid. The penalty can be up to ten times the deficient amount in serious cases. Sub-Registrars are required to check stamp adequacy before accepting a document for registration.

Are there different stamp duty rates for commercial vs residential property

The stamp duty rate on conveyances is a flat 2% regardless of whether the property is residential, commercial, or industrial. The difference in total tax burden arises from CVT, which is 2-3% for residential and 2.5% for commercial and industrial, and from the higher per-unit valuation table values assigned to commercial properties, which increase the base on which both duties are calculated. Details on how residential and commercial property differ in tax treatment are relevant for investors holding mixed property portfolios.