Who pays what?
| Tax | Paid by | Filer rate | Charged on |
|---|---|---|---|
| Section 236C advance tax | Seller | 2.75% | Amount received |
| Section 236K advance tax | Buyer | 1.25% | Fair market value |
| Section 37 capital gains tax | Seller | 15% flat if bought from 1 July 2024 | The gain (sale price less cost) |
These rates come from the Finance Act 2026 as reported by professional tax summaries. A budget speech and the final Act do not always match, so confirm on FBR's rate card before you sign. Provincial costs such as stamp duty and CVT are separate and are not covered here.
A worked example for a seller
Suppose you bought a house in 2025 for Rs 6,000,000 and sell it for Rs 10,000,000, and you are on the ATL. Advance tax under 236C is 2.75% of Rs 10,000,000, which is Rs 275,000. Capital gains tax is 15% of the gain of Rs 4,000,000, which is Rs 600,000. Advance tax is generally adjustable against your final tax for the year, so the extra you would pay at filing is roughly Rs 325,000.
This is a simple illustration. Real cases depend on documented purchase costs, the dates, and what counts as a cost. Do not use it for a sale deed without checking the numbers.
A worked example for a buyer
If the fair market value of the property is Rs 10,000,000 and you are a filer, 236K is 1.25%, which is Rs 125,000. This is paid at the time the transfer is registered, so it has to be ready before you go to the registrar, not after.
What if you bought the property before 1 July 2024?
Older purchases keep a holding period rule: the longer you held, the lower the rate, down to nil.
| Held for | Open plot | Constructed | Flat |
|---|---|---|---|
| Up to 1 year | 15% | 15% | 15% |
| 1 to 2 years | 12.5% | 10% | 7.5% |
| 2 to 3 years | 10% | 7.5% | 0% |
| 3 to 4 years | 7.5% | 5% | 0% |
| 4 to 5 years | 5% | 0% | 0% |
| 5 to 6 years | 2.5% | 0% | 0% |
| Over 6 years | 0% | 0% | 0% |
What changes if you are a non-filer?
Advance tax under 236C and 236K is several times higher, and capital gains tax is charged at normal slab rates with a floor of 15%. On the same sale, the total cash cost for a non-filer can be close to double. If you are about to buy or sell, check both parties with the ATL check first, and read filer vs non-filer if you need to fix your status before the deal.
Overseas Pakistanis with a POC or NICOP who are non-resident can use the filer rate under FBR's published procedure, even without being on the ATL. See overseas Pakistani tax filing.
Before the registrar: a short checklist
- Check the ATL status of the buyer and the seller.
- Confirm the fair market value FBR uses for the property.
- Work out 236C, 236K and any capital gains tax before the day.
- Keep proof of the purchase price and costs for the seller's return.
- Report the sale in your next return and, if it applies, your wealth statement.