What is Section 236K in Pakistan?

Section 236K is a withholding tax (WHT) deducted from property buyers at the time of purchase. Under Budget 2026-27, the rate was reduced from 2.5% to 1.25% for filers. Non-filers pay double the filer rate — 2.5%. The tax is collected by the property registrar (Sub-Registrar or Housing Authority) at the time of registration and deposited with FBR.

What is Section 236C in Pakistan?

Section 236C is a withholding tax deducted from property sellers at the time of sale. Under Budget 2026-27, the rate was reduced from 5.5% to 2.75% for filers. Non-filers pay 5.5%. The withholding agent is the property registrar or housing society. This tax is an advance income tax — it can be adjusted against your final tax liability in your annual return.

What are the new 236C and 236K rates for Tax Year 2027?

From July 1, 2026 (Tax Year 2027): Section 236K (buyer) = 1.25% for filers, 2.5% for non-filers. Section 236C (seller) = 2.75% for filers, 5.5% for non-filers. These rates apply to the FBR fair market value or the transaction value, whichever is higher.

Is 236K and 236C final tax or advance tax?

It depends on filer status. For filers, WHT under 236C and 236K is an advance tax — it can be adjusted against your total income tax liability in your annual return, and you may receive a refund if over-deducted. For non-filers and short-term holders in some cases, the WHT may be treated as a final tax on the transaction. Consult a tax professional for your specific situation.

How much will I pay in WHT if I buy a Rs 1 crore plot?

For a Rs 10,000,000 (1 Cr) plot, as a filer you pay 236K WHT of Rs 125,000 (1.25%). As a non-filer you pay Rs 250,000 (2.5%). This is paid at registration to the Sub-Registrar and is a deduction from your payment. The seller separately pays 236C on the same transaction.

Is the Section 7E transfer certificate still required?

No. Budget 2026-27 abolished the Section 7E deemed income tax and its transfer certificate requirement. From July 1, 2026, you no longer need a 7E certificate from FBR to complete a property transfer. See our Section 7E abolition guide for complete details.

What other taxes apply when transferring property in Pakistan 2026?

Beyond 236C/236K WHT: Stamp Duty (3%-5% depending on province), Capital Value Tax (CVT) on certain transactions, Capital Gains Tax (CGT) for sellers who made a profit, and relevant local taxes. Section 7E deemed income tax has been abolished. Always confirm current rates with a registered tax consultant before completing a transaction.

Property Transfer Tax 2026-27 Pakistan — 236C & 236K New Rates Guide

Budget 2026-27 brought significant relief to Pakistan's real estate market: property withholding tax rates were cut in half. Buyers (Section 236K) now pay 1.25% instead of 2.5%. Sellers (Section 236C) now pay 2.75% instead of 5.5%. Combined with the abolition of Section 7E deemed income tax, property transactions in Tax Year 2027 are substantially cheaper. Here is everything you need to know — with verified numbers and real rupee examples.

Key Change: WHT Rates Halved for Property Transactions

From July 1, 2026 (Tax Year 2027): 236K buyer rate = 1.25% (filer) | 236C seller rate = 2.75% (filer). Non-filers pay double. Section 7E transfer certificate requirement also abolished. These changes apply to all property transactions from July 1, 2026 onwards.

Section 236C and 236K — Quick Reference

Two separate withholding tax provisions apply when property changes hands in Pakistan. They operate independently — the buyer pays one, the seller pays the other — and both are collected at the point of registration.

Item	Who Pays	Old Rate (TY2026)	New Rate (TY2027)	Non-Filer Rate
Section 236K	Buyer	2.5%	1.25%	2.5%
Section 236C	Seller	5.5%	2.75%	5.5%

Both rates apply on the higher of FBR fair market value or the transaction (deed) value. The collecting agent is the Sub-Registrar, Housing Authority, or Housing Society — whoever registers the transfer.

Source: Finance Act 2026 / Budget 2026-27, effective July 1, 2026 for Tax Year 2027. FBR Circular / Finance Bill clauses amending Sections 236C and 236K of the Income Tax Ordinance 2001.

Section 236K — Buyer's Withholding Tax

Every time you buy property in Pakistan — plot, house, flat, commercial unit — the registrar collects WHT from you at the time of registration. This is Section 236K. It is your obligation as the buyer, not the seller's.

236K Rate Table — Tax Year 2027 (Effective July 1, 2026)

Buyer Status	236K WHT Rate	On Rs 50 Lakh Property	On Rs 1 Crore Property	On Rs 5 Crore Property
Active Filer	1.25%	Rs 62,500	Rs 125,000	Rs 625,000
Non-Filer	2.5%	Rs 125,000	Rs 250,000	Rs 1,250,000

Calculation Example — Buying a Rs 80 Lakh House (Filer)

Property Value (FBR or deed, whichever higher)Rs 8,000,000

Old 236K Rate (before July 2026)Rs 200,000 (2.5%)

New 236K Rate (from July 2026)Rs 100,000 (1.25%)

Your Saving Per TransactionRs 100,000

You save Rs 1 Lakh on this single purchase just by the rate change.

Section 236C — Seller's Withholding Tax

When you sell property, the registrar deducts WHT from your sale proceeds before releasing the remaining amount. This is Section 236C. The burden falls on the seller.

236C Rate Table — Tax Year 2027 (Effective July 1, 2026)

Seller Status	236C WHT Rate	On Rs 50 Lakh Sale	On Rs 1 Crore Sale	On Rs 5 Crore Sale
Active Filer	2.75%	Rs 137,500	Rs 275,000	Rs 1,375,000
Non-Filer	5.5%	Rs 275,000	Rs 550,000	Rs 2,750,000

Calculation Example — Selling a Rs 1.5 Crore Plot (Filer)

Sale ValueRs 15,000,000

Old 236C WHT (before July 2026)Rs 825,000 (5.5%)

New 236C WHT (from July 2026)Rs 412,500 (2.75%)

Seller Saving Per TransactionRs 412,500

Seller saves Rs 4.12 Lakh on this single sale just by the rate reduction.

Is 236C/236K Advance Tax or Final Tax?

This is a crucial question. The treatment differs based on your filer status:

Situation	236K Treatment	236C Treatment
Active Filer	Advance tax — adjustable against annual return. Can get refund if over-deducted.	Advance tax — adjustable against annual return. Can get refund if over-deducted.
Non-Filer	In most cases final tax — no further adjustment in a return (since no return filed)	In most cases final tax — no further adjustment
Person exempt from tax filing	May still be deducted but refundable via formal application	May still be deducted but refundable via formal application

Being an active filer matters enormously here. If you are a filer and your 236K/236C deduction exceeds your total tax liability for the year, you can claim a refund from FBR. Non-filers cannot make this adjustment. Become an active filer — Kamboh Associates can file your return for Rs 3,500. WhatsApp 0328-4675162.

Combined Cost of a Property Transaction in 2026

When buying or selling property in Pakistan, multiple taxes apply simultaneously. Here is a combined view of what a typical transaction looks like after Budget 2026-27:

Buying a Rs 1 Crore Property — Full Cost Breakdown (Filer)

Tax/Fee	Rate	Amount on Rs 1 Cr	Paid By	Changed?
236K WHT	1.25%	Rs 125,000	Buyer	Reduced ↓
Stamp Duty (Punjab)	~3%	Rs 300,000	Buyer	No change
CVT (Capital Value Tax)	Varies	~Rs 20,000–50,000	Buyer	No change
Registration Fee	~0.5–1%	~Rs 50,000–100,000	Buyer	No change
Section 7E Tax	Abolished	Rs 0	Buyer/Seller	Abolished ✓
236C WHT (Seller)	2.75%	Rs 275,000	Seller	Reduced ↓
Capital Gains Tax (Seller)	Depends on profit & holding	Varies	Seller	No change

The Non-Filer Penalty — Become a Filer to Save

Non-filers face double the WHT rates of filers. On a Rs 1 Crore property purchase:

Transaction	Filer Pays	Non-Filer Pays	Extra Cost for Non-Filer
Buying Rs 1 Crore property (236K)	Rs 125,000	Rs 250,000	Rs 125,000 extra
Selling Rs 1 Crore property (236C)	Rs 275,000	Rs 550,000	Rs 275,000 extra
Combined on a Rs 1 Cr buy+sell	Rs 400,000	Rs 800,000	Rs 400,000 extra

Income tax return filing at Kamboh Associates costs Rs 3,500. On just one property transaction, being a filer saves you Rs 1.25 Lakh (buyer) to Rs 4 Lakh (combined buy-sell at this value). The math is simple: file your return.

Section 7E Transfer Certificate — Gone

Before July 2026, a property sale required a Section 7E clearance certificate from FBR — proof that the seller had paid the annual deemed income tax on their property. This certificate was:

Obtained from FBR's IRIS portal under the property tab
Often delayed by 5–30 working days
A frequent source of corruption and delays at FBR field offices
Required by the Sub-Registrar before completing registration

Budget 2026-27 has completely abolished this requirement. From July 1, 2026, no 7E certificate is needed for any property transaction. Property sales can proceed directly after paying WHT and Stamp Duty — no FBR pre-clearance required.

Sub-Registrars cannot legally demand a Section 7E certificate from July 1, 2026. If any registrar attempts to demand one, this is contrary to the Finance Act 2026. Report such instances to FBR's anti-corruption helpline or contact Kamboh Associates for guidance.

Timeline — When Do New Rates Apply?

Transaction Date	236K (Buyer)	236C (Seller)	7E Certificate
Before July 1, 2026	2.5% (filer)	5.5% (filer)	Required
July 1, 2026 onwards	1.25% (filer)	2.75% (filer)	Not Required

If your property sale deed was registered before July 1, 2026, the old rates apply even if you're settling payment after July 2026. The effective date is the registration date, not the payment date. Deals registered after July 1, 2026 get the new rates.

How and Where WHT is Collected

Property WHT in Pakistan is collected at the point of registration. The process:

Sub-Registrar's office: For most residential and commercial property, WHT is collected before registration. The registrar uses the FBR valuation table or the deed value (whichever is higher) to calculate the tax.
Housing Societies (DHA, Bahria Town, etc.): These societies act as withholding agents and collect 236C/236K before completing the transfer in their records. DHA Lahore, Karachi, Islamabad each have their own transfer offices where this is done.
NADRA e-Sahulat / CPCs: Some areas have centralized processing for property taxes.

The collected WHT is deposited with FBR via challan under the relevant section codes. Always obtain a receipt confirming the tax has been collected and deposited.

Frequently Asked Questions

I am buying property in August 2026. What 236K rate do I pay?

August 2026 falls under Tax Year 2027 (July 2026 – June 2027). The new rate of 1.25% (filer) or 2.5% (non-filer) applies. If you are an active filer, you pay 1.25% of the higher of FBR value or deed value.

Can I get a refund of 236K or 236C tax?

Yes, if you are an active filer. When you file your annual income tax return, 236K and 236C deductions appear as advance tax credit. If your total tax liability for the year is less than the amount deducted, you can claim the difference as a refund. Non-filers generally cannot adjust or refund this tax. File your return — Kamboh Associates handles returns from Rs 3,500.

Does 236C apply if I am selling my own house where I live?

Yes. Section 236C applies to all immovable property sales regardless of whether it is your residence or investment property. The WHT is deducted at registration. However, whether this creates a final or advance tax liability depends on your individual income tax situation — consult a tax professional.

Do 236C and 236K apply on agricultural land?

Generally, 236C and 236K apply to "immovable property" as defined in FBR's Schedule of valuation rates. Agricultural land in non-urban areas is typically outside FBR's urban valuation table and may not be subject to these sections. However, peri-urban or categorized agricultural land can be captured. Confirm the FBR valuation status of the specific land before your transaction.

I sold property in June 2026. Am I subject to old or new rates?

If the registration deed was executed and registered before June 30, 2026 (end of Tax Year 2026), the old rates apply: 5.5% for sellers under 236C (if filer). If registration happened from July 1, 2026 onwards, the new rate of 2.75% applies.

What is Capital Gains Tax on property — is it affected?

Capital Gains Tax (CGT) on the profit from property sale was not directly changed in Budget 2026-27 in the same way as 236C/236K. CGT rates depend on holding period (how long you owned the property) and filer status. 236C WHT is separate from CGT — 236C is an advance tax on the gross sale value, while CGT is on the net profit (sale price minus purchase price and costs). Both are adjustable in your income tax return if you are a filer.

Property Transaction? Get the Tax Right

236C, 236K, CGT, Stamp Duty — property transactions have multiple tax layers. Our consultants tell you exactly what you owe, help you become an active filer to get the lower rate, and file your return to recover any overpaid WHT.

Free Property Tax Consult File Return — Rs 3,500

Property Transfer Tax 2026-27 Pakistan — 236C & 236K New Rates Complete Guide