Section 151 — Profit on Debt Withholding Tax in Pakistan
Section 151 profit-on-debt WHT Pakistan TY 2025-26 — 15% filer / 35% non-filer final tax on bank deposits, savings certs, NSCs, and Pakistan Investment Bonds.
Section 151 governs withholding on profit on debt — interest paid by banks on savings/deposit accounts, returns on National Savings Certificates and Defence Savings Certificates, and profit on Pakistan Investment Bonds. Banks deduct 15% for ATL filers and 35% for non-filers, as final tax. The premium for non-filers is the largest in any WHT section in Pakistan.
Because Section 151 is final, depositors cannot offset losses against the deduction or claim it as advance tax. The bank credits the net amount and reports the WHT to FBR. At year-end the bank issues a profit-on-debt certificate documenting the deduction; declare the gross profit and the WHT on your IRIS return under IRIS code 7033 (Final/Fixed Tax).
Roshan Digital Account (RDA) holders get a preferential 10% final tax on Naya Pakistan Certificates routed through the RDA — a separate regime aimed at overseas Pakistanis. Conventional savings accounts held by non-residents fall under the standard 15%/35% Section 151 rates unless the depositor qualifies for DTAA relief in their residence country.
Frequently asked questions
What is the Section 151 rate for filers?
15% on profit on debt — bank savings interest, National Savings Certificates, Pakistan Investment Bonds, and similar instruments. Final tax, deducted at source.
Why is the non-filer rate so high?
Section 151 charges non-filers 35% — the largest non-filer premium in any WHT section. The policy goal is to push savings-account holders onto the Active Taxpayer List.
Do Roshan Digital Account deposits face Section 151?
RDA holders get a preferential 10% final tax on Naya Pakistan Certificates routed through the RDA. Conventional RDA savings accounts default to standard Section 151 rates.
Can I claim Section 151 tax as a credit?
No. Section 151 is final tax — you cannot offset, adjust, or claim refund. Declare the income on your IRIS return for wealth-statement reconciliation only.