Lahore 22°C
Advance Tax on sale or transfer of immovable Property
(1) Subject to sub-section (2A), any person responsible for registering , recording or attesting transfer of any immovable property shall at the time of registering ,recording or attesting the transfer shall collect from the seller or transferor advance tax at the rate specified in Division X of Part IV of the First Schedule : Explanation,—For removal of doubt, it is clarified that the person responsible for registering, recording or attesting transfer includes person responsible for registering, recording or attesting transfer for local authority, housing authority, housing society, co-operative society , public and private real estate projects registered/governed under any law, joint ventures, private commercial concerns and registrar of properties.
Provided that this sub-section shall not apply to a seller, being the dependant of a Shaheed belonging to Pakistan Armed Forces or a person who dies while in the service of the Pakistan Armed Forces or the service of Federal or Provincial Government or a war wounded person while in service of Pakistan Armed Forces or Federal or Provincial Government or an ex-serviceman and serving personnel of armed forces or ex-employees or serving personnel of Federal and Provincial Government , in respect of first sale of immovable property acquired from or allotted by the Federal Government or Provincial Government or any authority duly certified by the official allotment authority, and the property acquired or allotted is in recognition of or for services rendered by the Shaheed or the person who dies in service or a war wounded person while in service of Pakistan Armed Forces or Federal or Provincial Government or an ex-serviceman and serving personnel of armed forces or ex-employees or serving personnel of Federal and Provincial Government :
Provided further that if the seller or transferor is a non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who had acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA) maintained with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan, the tax collected under this section from such persons shall be final discharge of tax liability in lieu of capital gains taxable under section 37 earned by the seller or transferor from the property so disposed of.
(2) The Advance tax collected under sub-section (1) shall be adjustable :
Provided that where immovable property referred to in sub- section (1) is acquired and disposed of within the same tax year, the tax collected under this section shall be minimum tax.
(2A) Notwithstanding anything contained in any other law, for the time being in force, any person responsible for registering, recording or attesting transfer of any immovable property shall not register, record or attest transfer unless the seller or transferor has discharged its tax liability under section 7E and evidence to this effect has been furnished to the said person in the prescribed mode, form and manner.;
(4) Sub-section (1) shall not apply to:—
(a) a seller, if the seller is dependent of:
(i) a seller, if the seller is dependent of: a Shaheed belonging to Pakistan Armed Forces; or (ii) a person who dies while in the service of the Pakistan Armed Forces or the Federal and Provincial Governments; and (b) to the first sale of immovable property which has been acquired or allotted as an original allottee, duly certified by the official allotment authority.
Provided that this sub-section shall not apply to a seller, being the dependant of a Shaheed belonging to Pakistan Armed Forces or a person who dies while in the service of the Pakistan Armed Forces or the service of Federal or Provincial Government or a war wounded person while in service of Pakistan Armed Forces or Federal or Provincial Government or an ex-serviceman and serving personnel of armed forces or ex-employees or serving personnel of Federal and Provincial Government , in respect of first sale of immovable property acquired from or allotted by the Federal Government or Provincial Government or any authority duly certified by the official allotment authority, and the property acquired or allotted is in recognition of or for services rendered by the Shaheed or the person who dies in service or a war wounded person while in service of Pakistan Armed Forces or Federal or Provincial Government or an ex-serviceman and serving personnel of armed forces or ex-employees or serving personnel of Federal and Provincial Government :
Provided further that if the seller or transferor is a non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who had acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA) maintained with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan, the tax collected under this section from such persons shall be final discharge of tax liability in lieu of capital gains taxable under section 37 earned by the seller or transferor from the property so disposed of.
(2) The Advance tax collected under sub-section (1) shall be adjustable :
Provided that where immovable property referred to in sub- section (1) is acquired and disposed of within the same tax year, the tax collected under this section shall be minimum tax.
(2A) Notwithstanding anything contained in any other law, for the time being in force, any person responsible for registering, recording or attesting transfer of any immovable property shall not register, record or attest transfer unless the seller or transferor has discharged its tax liability under section 7E and evidence to this effect has been furnished to the said person in the prescribed mode, form and manner.;
(4) Sub-section (1) shall not apply to:—
(a) a seller, if the seller is dependent of:
(i) a seller, if the seller is dependent of: a Shaheed belonging to Pakistan Armed Forces; or (ii) a person who dies while in the service of the Pakistan Armed Forces or the Federal and Provincial Governments; and (b) to the first sale of immovable property which has been acquired or allotted as an original allottee, duly certified by the official allotment authority.
Amendment history (15)
- Section 236B omitted by the Finance Act, 2021. The omitted section
- Inserted by the Finance Act, 2012.
- The words “Any person” substituted by the Finance Act, 2023.
- Inserted by the Finance Act, 2017.
- Added by the Finance Act, 2017.
- Inserted by the Finance Act, 2021.
- Expression inserted by the Finance Act, 2024.
- Full stop substituted and proviso added by the Finance Act, 2021. Earlier this substitution and addition
- Full stop substituted by the Finance Act, 2017
- inserted by the Finance Act, 2017
- Sub-section (2A) inserted by the Finance Act, 2023.
- Sub-section (3) omitted by the Finance Act 2015. The omitted sub-section
- Added by the Finance Act, 2016.
- Sub-section (3) omitted by the Finance Act, 2022. The omitted sub-section
- Section 236CA omitted by the Finance Act, 2026. The omitted section
Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.
Source FBR PDF page 483
Unofficial reference, compiled from the FBR’s consolidated Income Tax Ordinance 2001 (amended up to 30 June 2026). Provided for general information only — not an official FBR publication and not legal or tax advice. Always verify against the official FBR text before relying on it for filing or any decision.