LDA Avenue, Lahore — Plots Allotted by LDA Ballot: The Tax Records

The Lahore Development Authority's own housing schemes, such as LDA Avenue, have allotted plots through balloting among applicants, with payment in instalments. For successful applicants, a plot from a government authority at a fixed price is a valuable asset — and the application money, the ballot and the instalments each need to be recorded.

Stages

Source of funds

Application deposits and instalments should come from declared income or savings. Many applicants apply with family help; record gifts or loans.

Advance tax

Allotment by a development authority at the original price may or may not involve advance tax at that stage; later transfers to buyers do. Keep LDA's documents and any challans.

Selling an LDA plot

Selling an allotted plot is a transfer with 236C/236K, LDA transfer fees and NDC requirements. The gain is sale price minus total paid. See LDA plot transfers.

Multiple applications

Families sometimes apply in several names to improve their chances. Each application deposit is the applicant's asset; if a parent funded them, record gifts. Plots won in a non-filer's name attract higher advance tax on later sale.

Instalment delays and surcharges

LDA schemes charge surcharges for late instalments. Surcharges paid are part of what the plot cost you or a personal expense, depending on how you treat them consistently; record them either way, because they leave your bank account.

Cancellation by the authority

If LDA cancels an allotment for non-payment or other reasons, the amounts paid may be refunded or forfeited per its rules. A refund returns cash; a forfeiture is a loss in your personal records. Keep LDA's letters.

Plots in family members' names

When several family members apply and one wins, the plot belongs to the person named. If you paid for it, record a gift — and make sure the named person files, especially before any sale.

LDA Avenue — questions we get asked