🔍 Key Takeaways for Property Buyers & Sellers
✅ File your tax returns on time to benefit from lower rates.
✅ Check ATL status before property transactions.
✅ High-value deals (Rs. 100M+)? Obtain an FBR Eligibility Certificate first.
⚠️ Non-compliance risks penalties & transaction delays.
Property Taxes in Pakistan 2025: New FBR Rates for Buyers & SellersÂ
The Punjab Land Records Authority (PLRA) has issued a crucial notification (Letter No. CFO/2559) regarding the implementation of amended income tax rates under Sections 236C and 236K of the Income Tax Ordinance, 2001, as per the Finance Act 2025.
This update affects property buyers, sellers, and revenue officers involved in land transactions. Non-compliance may lead to FBR scrutiny and recovery actions against transferring authorities.
Here’s a breakdown of the key changes:
đź“Ś 1. Advance Tax on Sale/Transfer of Property (Section 236C)
Revenue officers must collect advance tax from sellers/transferors at the following rates:
Gross Consideration | Person in ATL | Late Return Filer | Non-ATL Person |
Up to Rs. 50M | 4.5% | 7.5% | 11.5% |
Rs. 50M – 100M | 5% | 8.5% | 11.5% |
Above Rs. 100M | 5.5% | 9.5% | 11.5% |
Key Points:
âś” Active Taxpayer List (ATL) benefit: Lower rates for compliant taxpayers.
âś” Late filers & non-filers face significantly higher tax rates.
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đź“Ś 2. Advance Tax on Purchase/Transfer of Property (Section 236K)
Buyers/transferees must pay advance tax based on property value:
Fair Market Value | Person in ATL | Late Return Filer | Non-ATL Person |
Up to Rs. 50M | 1.5% | 4.5% | 10.5% |
Rs. 50M – 100M | 2% | 5.5% | 14.5% |
Above Rs. 100M | 2.5% | 6.5% | 18.5% |
Key Points:
✔ Non-filers pay up to 18.5% tax—a strong incentive to file returns.
âś” ATL members enjoy the lowest rates (as low as 1.5%).
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đź“Ś 3. Restrictions on High-Value Transactions (Section 114C)
- Transactions exceeding Rs. 100M require an FBR Eligibility Certificate.
- Exemption: Transactions below Rs. 100M are not restricted.
Why This Matters:
🚨 No approval will be granted for high-value property transfers without FBR clearance.
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🔍 Key Takeaways for Property Buyers & Sellers
âś… File your tax returns on time to benefit from lower rates.
âś… Check ATL status before property transactions.
âś… High-value deals (Rs. 100M+)? Obtain an FBR Eligibility Certificate first.
⚠️ Non-compliance risks penalties & transaction delays.
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📢 What Should You Do Next?
âś” Verify your tax filing status (ATL/non-ATL).
âś” Consult a tax advisor for high-value property transactions.
âś” Ensure proper documentation to avoid FBR scrutiny.
đź’ˇ Need Help with Property Tax Compliance?
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Would you like additional details on any section? Let me know!
