Section 236C — Advance Tax on Sale of Immovable Property
Section 236C advance tax on property sale Pakistan TY 2025-26 — 3% filer / 10% non-filer on FBR-notified property value, collected by registrar.
Section 236C levies advance income tax on the seller in a property transaction — 3% for ATL filers, 10% for non-filers. The base is not the declared sale price but the FBR-notified valuation table for the relevant area (gazetted by FBR per city per zone). The registrar collects at the moment of property transfer.
The non-filer premium under 236C is among the harshest in the WHT code: 10% versus 3% means a single PKR 50 million property sale costs a non-filer PKR 5 million in WHT versus PKR 1.5 million for a filer — a PKR 3.5 million difference. Many Pakistani property sellers file their return in the days before signing specifically to capture the filer rate.
Section 236C is adjustable for the seller — claim it as advance tax credit in your IRIS return against any slab-based liability or against capital gains tax under Section 37(1A). The CGT regime: 15% flat for filers on post-1-July-2024 acquisitions, holding-period-based rates for pre-2024 acquisitions. Section 236C interacts with both — keep the registrar's deduction challan as evidence.
Frequently asked questions
What is the Section 236C rate?
3% for ATL filers / 10% for non-filers, on the FBR-notified property valuation, collected by the registrar at the moment of transfer.
Is 236C based on declared price or FBR valuation?
FBR-notified valuation — gazetted per city per zone. Declaring a lower sale price doesn't reduce the 236C base; the FBR table is the floor.
Can I claim Section 236C back?
Yes — it's adjustable. Claim it as advance tax in your IRIS return against slab-based liability and any Section 37(1A) capital gains tax.
Why is non-filer 236C so high?
10% vs 3% filer rate — meant as enforcement against non-filers using property as a wealth store. The differential is the largest single ATL premium in Pakistan's tax code.