FBR enforces increased withholding tax on non-filers on bank transactions

The Federal Board of Revenue (FBR) has implemented the increased tax on cash withdrawals by non-filers, as announced in the federal budget for the fiscal year 2025–26.

According to the FBR, individuals not listed in the Active Taxpayers List (ATL) will now face a higher tax deduction on bank withdrawals.

The FBR stated that a 0.8% tax will now be applied on daily withdrawals exceeding Rs. 50,000, up from the previous rate of 0.6%.

It was also stated that every banking company will be authorized to deduct advance adjustable tax from non-filers. Additionally, the rate of advance tax on the purchase, sale, or transfer of immovable property has been revised.

To provide relief to property buyers, the withholding tax has been reduced by 1.5%.

Meanwhile, for sellers or transferors, the tax rate in each slab has been increased by 1.5% to adjust for capital gains on property sales.

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The FBR explained that Sections 236C and 236K of the Income Tax Ordinance have been amended for this purpose.

Now, the tax on purchasing property worth up to Rs. 50 million has been reduced to 1.5%, down from the previous 3%.

Similarly, for property worth up to Rs. 100 million, the tax has been reduced from 3.5% to 2%, and for properties worth more than Rs. 100 million, the tax has been lowered from 4% to 2.5%.