Section 236K — Advance Tax on Purchase of Immovable Property
Section 236K advance tax on property purchase Pakistan TY 2025-26 — 3% filer / 10.5% non-filer on FBR-notified value, collected from buyer at transfer.
Section 236K is the mirror of 236C — applied to the buyer in a property transaction. Filer rate is 3% of FBR-notified value, non-filer rate is 10.5%. The registrar collects at the moment of transfer along with stamp duty, CVT, and other transactional taxes. Both buyer and seller transact through the registrar; both pay WHT on the same property; both base on the FBR valuation table.
Combined transactional burden on a property transaction in Pakistan is heavy: 3% Section 236C + 3% Section 236K + 3-4% provincial stamp duty + CVT + registration fees + possible Section 37(1A) CGT. For filers this is roughly 12-15% of the FBR-notified value. For non-filers the same transaction costs 20%+. The non-filer premium is the strongest single argument for filing a return before any property transaction.
Section 236K is adjustable for the buyer — claim it as advance tax credit. The buyer's wealth statement must also reflect the acquisition; the source of funds for the property purchase is one of FBR's primary audit targets. Maintain bank evidence of the down payment, registrar challan for 236K, and the conveyance deed as the documentation chain.
Frequently asked questions
Who pays Section 236K?
The buyer — at 3% (filer) or 10.5% (non-filer) of FBR-notified property value, collected by the registrar at transfer alongside stamp duty and other levies.
How does 236K differ from 236C?
236C taxes the seller (3%/10%); 236K taxes the buyer (3%/10.5%). Both apply on the same transaction at the FBR-notified value, collected by the registrar.
Can I claim 236K back as advance tax?
Yes — adjustable advance tax. Claim it in your IRIS return against slab-based liability. Buyer must also reconcile the purchase on the wealth statement.
Total transactional cost on a property in Pakistan?
For filers: roughly 12-15% of FBR value (236C + 236K + stamp duty + CVT + fees). For non-filers: 20%+ — driven by the non-filer premium on 236C and 236K.