2026-02-02 · 7 min read
What is Section 236K advance tax?
Section 236K is the advance tax collected from the buyer at the time of property purchase and registration. The rate you pay depends entirely on your status in the FBR Active Taxpayer List (ATL) on the date of the transaction. Filers pay the lowest rate, late filers pay an intermediate rate introduced to penalise delayed returns, and non-filers pay the highest rate.
What is Section 236C advance tax?
Section 236C is the advance tax collected from the seller at the time of transferring or disposing of immovable property. Like 236K, the rate is tiered by filer status. Sellers who appear on the ATL benefit from a materially lower deduction at the registry stage.
Filer vs late filer vs non-filer at a glance
A filer is a person whose name appears on the FBR Active Taxpayer List because their latest income tax return was filed on time. A late filer filed the return after the due date, so they sit in a middle bracket. A non-filer has not filed at all and faces roughly double or more the filer rate. Becoming a filer before signing a sale agreement is usually the single cheapest way to reduce transaction cost.
Other charges to budget for
Beyond FBR advance tax, buyers should budget for provincial stamp duty, registration fee, town or cantonment tax, and society transfer charges. In Punjab these provincial components typically add another 2 to 3 percent of DC or FBR valuation, so total closing costs frequently reach 5 to 12 percent depending on filer status.
How to become a filer before buying
Register on FBR IRIS, obtain an NTN, file your income tax return for the latest tax year, and confirm your name appears on the weekly ATL update. Many buyers complete this in one to two weeks, which can save hundreds of thousands of rupees on a single mid-sized transaction.
Frequently asked questions
Do I pay both 236K and 236C?
No. As a buyer you pay 236K, as a seller you pay 236C. In a single transaction each party pays their own side.
Is advance tax refundable?
Advance tax is adjustable against your annual income tax liability when you file your return, so filers can often recover part of it.
Which valuation is used?
Tax is normally calculated on the higher of FBR valuation table value or the declared consideration, not the market rumour price.