Income Tax Ordinance, 2001 — Section 236K: Advance tax on purchase or transfer of immovable property

4[236K. Advance tax on purchase or transfer of immovable property.—(1) Any person responsible for registering 5[,recording] or attesting transfer of any immovable property shall at the time of registering 6[,recording] or attesting the transfer shall collect from the purchaser or transferee advance tax at the rate specified in Division XVIII of Part IV of the First Schedule. 7[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, 1 Added by the Finance Act, 2013. 2 Section 236I omitted by the Finance Act, 2022. The omitted section read as follows: “236I. Collection of advance tax by educational institutions.— (1) There shall be collected advance tax 2[from a person not appearing on the active taxpayers’ list] at the rate specified in Division XVI of Part-IV of the First Schedule on the amount of fee paid to an educational institution.

(2)The person preparing fee voucher or challan shall charge advance tax under sub section (1) in the manner the fee is charged.

(3)Advance tax under this section shall not be collected from a person 2[on an amount which is paid by way of scholarship or] where annual fee does not exceed two hundred thousand rupees.

(4)The term “fee” includes, tuition fee and all charges received by the educational institution, by whatever name called, excluding the amount which is refundable.

(4)Tax collected under this section shall be adjustable against the tax liability of either of the parents or guardian making payment of the fee.] Chapter XII – Transitional Advance Tax Provisions housing authority, housing society, co-operative society 1[, public and private real estate projects registered/governed under any law, joint ventures, private commercial concerns] and registrar of properties.]

(2)The advance tax collected under sub-section (1) shall be adjustable 2[: Provided that if the buyer or transferee is a non-resident individual holding a Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who has 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 for such buyer or transferee.] 3 [ ] 4[(3) Any person responsible for collecting payments in installments for purchase or allotment of any immovable property where the transfer is to be effected after making payment of all installments, shall at the time of collecting installments collect from the allotee or transferee advance tax at the rate specified in Division XVIII of Part IV of the First Schedule] 5[: Provided that where tax has been collected along with installments, no further tax under this section shall be collected at the time of transfer of property in the name of buyer from whom tax has been collected in installments which is equal to the amount payable in this section.]

(4)Nothing contained in this section shall apply to a scheme introduced by the Federal Government, or Provincial Government or an Authority established under a Federal or Provincial law for expatriate Pakistanis 6[:] 1 Inserted by the Finance Act, 2021. 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 Sub-section (3) omitted by the Finance Act, 2015. The omitted sub-section (3) read as follows: “(3) The advance tax under this section shall not be collected in the case of the Federal Government, a Provincial Government, a Local Government or a foreign diplomatic mission in Pakistan.” 4 Sub-section (3) inserted by the Finance Act, 2018. 5 Full stop substituted and proviso added by the Finance Act, 2021. 6 Full stop substituted by the finance Act, 2015. 473 Chapter XII – Transitional Advance Tax Provisions 1[“Provided that the mode of payment by the expatriate Pakistanis in the said scheme or schemes shall be in the foreign exchange remitted from outside Pakistan through normal banking channels.”] 2[ ] 3[ ] 4[ ] 1 Added by the Finance Act, 2015. 2 Section 236L omitted by the Finance Act, 2021. The omitted section read as follows: