Income Tax Ordinance, 2001 — Section 236C: Advance Tax on sale or transfer of immovable Property

4[236C. Advance Tax on sale or transfer of immovable Property. — (1) 5[Subject to sub-section (2A), any person] responsible for registering 6[, recording] or attesting transfer of any immovable property shall at the time of registering 7[,recording] or attesting the transfer shall collect from the seller or transferor advance tax at the rate specified in Division X of Part IV of the First Schedule 8[:] 9[Explanation,—For removal of doubt, it is clarified that the person responsible for registering, recording or attesting transfer includes person responsible for registering, recording or attesting transfer for local authority, housing authority, housing society, co-operative society 10[, public and private real estate projects registered/governed under any law, joint ventures, private commercial concerns] and registrar of properties.] 11[Provided that this sub-section shall not apply to a seller, being the dependant of a Shaheed belonging to Pakistan Armed Forces or a person who dies while in the service of the Pakistan Armed Forces or the service of Federal or Provincial Government 12[or a war wounded person while in service of Pakistan Armed Forces or Federal or Provincial Government or an ex-serviceman and serving personnel of armed 1 Section 236B added by the Finance Act, 2010. 2 Sub-section (4) omitted by the Finance Act, 2015. The omitted sub-section (4) read as follows: [(4) The advance tax under this section shall not be collected in the case of

(a)the Federal Government or a Provincial Government; or

(b)a person who produces a certificate from the Commissioner Inland Revenue that income of such person during the tax year is exempt.] Chapter XII – Transitional Advance Tax Provisions forces or ex-employees or serving personnel of Federal and Provincial Government], in respect of first sale of immovable property acquired from or allotted by the Federal Government or Provincial Government or any authority duly certified by the official allotment authority, and the property acquired or allotted is in recognition of or for services rendered by the Shaheed or the person who dies in service 1[or a war wounded person while in service of Pakistan Armed Forces or Federal or Provincial Government or an ex-serviceman and serving personnel of armed forces or ex-employees or serving personnel of Federal and Provincial Government] ] 2[: [Provided further that if the seller or transferor is a non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who had acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA) maintained with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan, the tax collected under this section from such persons shall be final discharge of tax liability in lieu of capital gains taxable under section 37 earned by the seller or transferor from the property so disposed of.]

(2)The Advance tax collected under sub-section (1) shall be adjustable 3[:] 4[Provided that where immovable property referred to in sub section (1) is acquired and disposed of within the same tax year, the tax collected under this section shall be minimum tax.] 5[(2A) Notwithstanding anything contained in any other law, for the time being in force, any person responsible for registering, recording or attesting transfer of any immovable property shall not register, record or attest transfer unless the seller or transferor has discharged its tax liability under section 7E and evidence to this effect has been furnished to the said person in the prescribed mode, form and manner.”; ] 6[ ] 1 Expression inserted by the Finance Act, 2024. 2 Full stop substituted and proviso added by the Finance Act, 2021. Earlier this substitution and addition were made through Tax Laws (Amendment) Ordinance, 2021. 3 Full stop substituted by the Finance Act, 2017 4 inserted by the Finance Act, 2017 5 Sub-section (2A) inserted by the Finance Act, 2023. 6 Sub-section (3) omitted by the Finance Act 2015. The omitted sub-section read as follows: “(3) The advance tax under this section shall not be collected in the case of Federal Government, Provincial Government or a Local Government.” 468 Chapter XII – Transitional Advance Tax Provisions 1[ ] 2[ ] 3[ ] 4[(4) Sub-section (1) shall not apply to:

(a)a seller, if the seller is dependent of:

(i)a seller, if the seller is dependent of: a Shaheed belonging to Pakistan Armed Forces; or

(ii)a person who dies while in the service of the Pakistan Armed Forces or the Federal and Provincial Governments; and

(b)to the first sale of immovable property which has been acquired or allotted as an original allottee, duly certified by the official allotment authority.] Chapter XII – Transitional Advance Tax Provisions

(3)The tax required to be collected under this section shall be minimum tax in respect of income arising from such drama serial or play or advertisement referred to in sub-section (1) or (2) of this section.] 1[236CB. Advance tax on functions and gatherings. – (1) Every prescribed person shall collect advance tax at the rate specified in Division Xl of Part IV of the First Schedule on the total amount of the bill from a person arranging or holding a function in a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose, subject to such conditions or limitations as may be prescribed.

(2)Where the food, service or any other facility is provided by any other person, the prescribed person shall also collect advance tax on the payment for such food, service or facility at the rate specified in Division Xl of Part IV of the First Schedule from the person arranging or holding the function.

(3)The advance tax collected under sub-section (1) and subsection (2) shall be adjustable.

(4)ln this section –

(a)"function" includes any wedding related event, a seminar, a workshop, a session, an exhibition, a concert, a show, a party or any other gathering held for such purpose; and

(b)"prescribed person" includes the owner, a lease-holder, an operator or a manager of a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose.] 2[ ] 1 Section 236CB inserted by the Finance (Supplementary) Act, 2023 (X of 2023) dated 23.02.2023. 2 Section 236D and 236F omitted through Finance Act, 2020 dated 30th June, 2020 the omitted sections read as follows: 236D. Advance tax on functions and gatherings.— (1) Every prescribed person shall collect advance tax at the rate specified in Division XI of Part IV of the First Schedule on the total amount of the bill from a person arranging or holding a function in a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose.

(2)Where the food, service or any other facility is provided by any other person, the prescribed person shall also collect advance tax on the payment for such food, service or facility at the rate specified in Division XI of Part IV of the First Schedule from the person arranging or holding the function.

(3)The advance tax collected under sub-section (1) and sub-section (2) shall be adjustable.

(4)In this section,

(a)“function” includes any wedding related event, a seminar, a workshop, a session, an exhibition, a concert, a show, a party or any other gathering held for such purpose; and

(b)“prescribed person” includes the owner, a lease-holder, an operator or a manager of a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose.] 2 2 [ [ ] ] 2 [236F. Advance tax on cable operators and other electronic media.— (1) Pakistan Electronic Media Regulatory Authority, at the time of issuance of licence for distribution services or renewal of the licence to a licencee, shall collect advance tax at the rates specified in Division XIII of Part IV of the First Schedule.

(2)The tax collected under sub-section (1) shall be adjustable. 470 Chapter XII – Transitional Advance Tax Provisions