How is section 236C tax worked out?
The calculator applies the rate for the tax year and the seller's status to the whole gross consideration. In tax year 2026 the rate depended on the band the amount fell in, and that band's rate applied to every rupee. From tax year 2027 there is a single rate.
Rates by tax year
| Gross consideration | On the ATL, 2027 | On the ATL, 2026 | Not on the ATL |
|---|---|---|---|
| Up to Rs 50 million | 2.75% | 4.5% | 11.5% |
| Above Rs 50 million, up to Rs 100 million | 2.75% | 5% | 11.5% |
| Above Rs 100 million | 2.75% | 5.5% | 11.5% |
The tax year 2027 rate is Division X of Part IV as substituted by the Finance Act, 2026. The tax year 2026 bands are the table it replaced, quoted in the footnote of the edition amended to 30.06.2026.
What exclusions does section 236C contain?
- The first proviso to sub-section (1) excludes a seller who is the dependant of a Shaheed of the Pakistan Armed Forces, or of a person who died in the service of the Armed Forces or the Federal or a Provincial Government, and (since the Finance Act, 2024) a war wounded person, ex-servicemen and serving personnel of the armed forces, and ex-employees and serving personnel of the Federal and Provincial Governments, on the first sale of property acquired from or allotted by government, or an authority certified by the allotment authority, in recognition of service.
- Sub-section (4), added by the Income Tax (Fourth Amendment) Act, 2016, also excludes dependants of a Shaheed or of a person who died in service, and the first sale of property acquired or allotted as an original allottee. The printed text of clause (a) repeats its opening words and joins the clauses with "and", so whether both conditions must be met is not clear from the text.
- Section 159(1B) lets the Commissioner issue an exemption certificate for a residential property that has been in personal use for the last fifteen years, declared in the wealth statement for those fifteen years, and appears as the person's residence in the tax record, where the gain is not chargeable under section 37(1A). It is issued once in fifteen years.
What about people who filed late in tax year 2026?
Rule 1A of the Tenth Schedule, inserted by the Finance Act, 2024, set higher section 236C rates for people on the active taxpayers' list who had not filed their return by the due date: 7.5% up to rs 50 million, 8.5% above rs 50 million, up to rs 100 million, 9.5% above rs 100 million. Its proviso excluded a person who had filed by the due date for all of the last three preceding tax years. The Finance Act, 2026 omitted rule 1A. The calculator does not model it.
Where the rates come from
Every rate is read from the Income Tax Ordinance, 2001 as consolidated by FBR. The rates on this page were last checked against the official text on 2026-09-26.
- Income Tax Ordinance, 2001, section 236C, advance tax on sale or transfer of immovable property (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, First Schedule, Part IV, Division X, as substituted by the Finance Act, 2026 (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, Tenth Schedule, rule 1, proviso table, rate for people not on the ATL (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, Tenth Schedule, rule 1A as omitted by the Finance Act, 2026 (quoted in the footnote) (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, section 159, exemption certificate for a residence, sub-section (1B) (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, edition amended to 31.07.2025, tax year 2026 table (as amended to 2025-07-31) official file
Common questions
What is the advance tax on selling property in tax year 2027?
For a seller on the active taxpayers' list, 2.75% of the gross amount of the consideration received, under Division X of Part IV of the First Schedule as substituted by the Finance Act, 2026.
What does a seller not on the active taxpayers' list pay?
11.5% of the gross consideration, under a proviso to rule 1 of the Tenth Schedule as amended by the Finance Act, 2025.
Is there still an exemption for property held more than four years?
No. Section 236C(3), which said the tax would not be collected where the property was held for more than four years, was omitted by the Finance Act, 2022. The tax is now collected whatever the holding period.
Is section 236C tax adjustable?
Section 236C(2) says the tax collected is adjustable. Its proviso makes it minimum tax where the property is acquired and disposed of within the same tax year. For a non-resident individual holding a POC, NICOP or CNIC who bought through a Foreign Currency Value Account or NRP Rupee Value Account, the tax is a final discharge of liability in lieu of capital gains tax under section 37.
Who does not pay section 236C tax?
The first proviso to section 236C(1) excludes the dependant of a Shaheed of the Armed Forces, or of a person who died in service of the Armed Forces or the Federal or a Provincial Government, and certain war wounded, ex-servicemen, serving personnel and ex-employees, on the first sale of property allotted by government in recognition of service. Section 159(1B) also allows an exemption certificate for a residence in personal use for fifteen years.