The Federal Board of Revenue (FBR) has issued amendments to the Income Tax Rules for the fiscal year 2025-26, introducing significant changes in tax rates for non-filers on daily bank withdrawals and the purchase, sale, or transfer of immovable property.
According to the FBR notification, individuals not included in the Active Taxpayers List (ATL) will now face an increased tax rate of 0.8%—up from 0.6%—on daily bank withdrawals exceeding Rs50,000. Banking companies will be authorized to directly deduct this advance adjustable tax from non-filers.
The FBR has also revised the advance tax rates on the purchase, sale, or transfer of immovable property. Under the new schedule, buyers will receive relief with a 1.5% reduction in withholding tax rates, while sellers or transferors will see a 1.5% increase across all slabs to adjust for capital gains. For this purpose, amendments have been made to Sections 236C and 236K of the Income Tax Ordinance.
The revised schedule is as follows:
For property valued up to Rs50 million, the tax rate has been reduced from 3% to 1.5%.
For property valued up to Rs100 million, the tax rate has been reduced from 3.5% to 2%.
For property valued above Rs100 million, the tax rate has been reduced from 4% to 2.5%.
The FBR clarified that if a person has owned a property for the past 15 years and has used it as their residence during this period, it will be exempt from withholding tax under Section 236C. However, the 15-year ownership must be declared in tax returns to be eligible for this exemption.
