FAQs on filer rate under section 236C or 236K
Whether there are tax benefits for Overseas Pakistanis?
Yes. For Overseas Pakistanis the rate of advance income tax on purchase and sale of immovable properties under sections 236C and 236K shall be "filer rate" even if they are "non-filer" subject to the following conditions:
-
They are holding POC or NICOP; and
-
They are non-resident in Pakistan meaning their stay in a financial year in Pakistan is less than 183 days.
What are the "filer and non-filer rates" under sections 236C and 236K?
The advance income tax under sections 236C and 236K at the time of transfer of immovable properties differ depending on the fair market value of the immovable properties, as well as the status of a person who has filed his income tax return and a person who filed late or did not file at all. Those advance rates after the amendments made through Finance Act, 2025 are as under:
Rate of advance income tax under section 236K to be collected from purchaser of property
|
Fair market value of the immovable property |
Filer |
Late filer |
Non-filer |
|
If the fair market value does not exceed Rs. 50 million |
1.5% |
4.5% |
10.5% |
|
If the fair market value exceeds Rs. 50 million but does not exceed Rs. 100 million |
2% |
5.5% |
14.5% |
|
If the fair market value exceeds Rs. 100 million |
2.5% |
6.5% |
18.5% |
Rate of advance income tax under section 236C to be collected from seller of property
|
Gross amount of the consideration received |
Filer |
Late filer |
Non-filer |
|
If the gross amount of the consideration received does not exceed Rs. 50 million |
4.5% |
7.5% |
11.5% |
|
If the gross amount of the consideration received exceeds Rs. 50 million but does not exceed Rs. 100 million |
5% |
8.5% |
11.5% |
|
If the gross amount of the consideration received exceeds Rs. 100 million |
5.5% |
9.5% |
11.5% |
How an Overseas Pakistani who holds a POC or a NICOP and is also non-resident in Pakistan can avail advance income tax as "filer rate" if they have not filed return?
Overseas Pakistanis who are holding POC or NICOP can avail "filer rate" under sections 236C and 236K by following procedure:
-
The concerned Authority, Registrar or a housing Society who is responsible for registering, transferring or recording the immovable property shall click on the "Overseas Pakistanis" link on FBR's web portal to create a PSID (payment slip identity)
-
The system shall redirect the person to a form to:
-
declare his POC or NICOP No and the system will fetch automatically his details such as name and address;
-
upload scanned copy of his POC or NICOP; and
-
his status as "resident" or "non-resident" and can upload documents in support thereof.
-
They system shall digitally make the PSID available in the IRIS digital inbox of the concerned Commissioner for approval;
-
The Commissioner shall verify the documents attached, approve after verification and inform the person who created PSID by email and SMS;
-
The system shall allow the person to make payment of advance income tax at "filer rate" despite being a "non-filer".
