Property Withholding Tax Calculator Pakistan — Section 236C & 236K (FY 2026-27)

Section 236C — Withholding Tax on Sale of Property (FY 2026-27)

Section 236C applies to the seller. Finance Act 2026 sets a flat ATL rate of 2.75% of gross consideration. The special Rule 1 table in the Tenth Schedule sets the non-ATL rate at 11.50%.

Section 236K — Withholding Tax on Purchase of Property (FY 2026-27)

Section 236K applies to the buyer. Finance Act 2026 sets a flat ATL rate of 1.25% of fair market value. The special Rule 1 table in the Tenth Schedule keeps non-ATL bands of 10.50% up to Rs. 50 million, 14.50% above Rs. 50 million to Rs. 100 million, and 18.50% above Rs. 100 million.

Key Points

• FY 2026-27 ATL rates are flat at 1.25% on purchase and 2.75% on sale; special non-ATL rates remain 10.50%–18.50% on purchase and 11.50% on sale
• Both taxes are collected by the registering authority at the time of transfer
• The separate late-filer tier in Rule 1A of the Tenth Schedule was omitted
• Confirm the PSID amount and any exemption or concession in FBR IRIS before payment

Frequently Asked Questions

What's the difference between Section 236C and Section 236K?

Section 236C applies to the seller on the sale of immovable property, while Section 236K applies to the buyer on the purchase of immovable property. They're collected at the same time as the transaction, by the registering/transferring authority.

Do I pay this tax as a buyer, a seller, or both?

For a person on the ATL, Section 236K applies at 1.25% on purchase and Section 236C at 2.75% on sale for FY 2026-27. If you both buy and sell property, the two collections apply separately.

Does filer status still affect the rate in FY 2026-27?

Yes. Finance Act 2026 sets flat ATL rates of 1.25% for Section 236K and 2.75% for Section 236C. The special non-ATL tables in Rule 1 of the Tenth Schedule remain: 236K is 10.50%, 14.50%, or 18.50% by fair-market-value band, and 236C is 11.50%. Rule 1A, the separate late-filer tier, was omitted.

Is this tax adjustable against my annual income tax return?

These sections collect advance tax at the transaction stage. Whether and how the amount is adjustable depends on the taxpayer and transaction, so confirm the treatment in FBR IRIS or with a qualified adviser before filing.

Are there any exemptions from property withholding tax?

Specific statutory exemptions and concessions may apply. FBR says an eligible non-resident Overseas Pakistani holding a POC or NICOP may receive the ATL rate even when not on the ATL. Check the current law and your facts before relying on an exemption.