ISLAMABAD: The Federal Board of Revenue (FBR) has introduced amendments to income tax regulations for the fiscal year 2025-26, aiming to expand the tax base and curb non-compliance.
As per the revised rules, non-filers withdrawing more than PKR 50,000 per day from bank accounts will now be charged a 0.8% withholding tax, increased from the previous 0.6% rate. This measure targets undocumented cash transactions and encourages individuals to become active taxpayers. Although the Senate’s Finance Committee had suggested raising the limit to PKR 75,000, the government retained the PKR 50,000 threshold. Banks are authorised to deduct this adjustable advance tax from non-filers automatically.
For real estate transactions, buyers will now enjoy a 1.5% reduction in withholding tax, while sellers or transferors will face a 1.5% increase in applicable tax rates across all slabs, aligning with capital gains tax adjustments. These provisions are covered under Sections 236C and 236K of the Income Tax Ordinance.
Properties held for over 15 years and declared in tax returns will be exempt from withholding tax under Section 236C. The exemption also applies if the owner has resided in the property during this period.
FBR has further clarified audit immunity provisions, stating that taxpayers whose cases have been selected for audit in any of the past three years will not be chosen again within that timeframe.
These changes form part of the government’s strategy to improve documentation, strengthen compliance, and ensure equitable tax collection.
