236C and 236K Tax Explained: 2026-27 Rates for Property Buyers and Sellers

Section 236K is the advance tax a buyer pays on the fair market value of property and section 236C is the advance tax a seller pays on the sale price; for FY2026-27 filers pay 1.25% and 2.75% flat, while non-filers pay 10.5–18.5% under 236K and 11.5% under 236C.

Section 236C is the advance tax a seller pays when property is transferred, and section 236K is the advance tax a buyer pays. From 1 July 2026, a filer pays 2.75% under 236C and 1.25% under 236K at every property value, under FBR's Withholding Tax Rate Card updated as per the Finance Act 2026.

A non-filer pays 11.5% to sell and between 10.5% and 18.5% to buy. Both taxes must be paid before the registrar, society or development authority will complete the transfer.

What 236C and 236K are

Both are withholding taxes in the Income Tax Ordinance, 2001. They are collected by whoever registers or records the transfer: a sub-registrar, a housing society, a cantonment board, or an authority such as LDA.

The references in the last row are from the FBR rate card. The Tenth Schedule is what sets the higher rates for persons not on the Active Taxpayers List.

2026-27 rate table (Finance Act 2026)

These are the exact bands in the FBR rate card.

Section 236K (buyer), on fair market value

Section 236C (seller), on gross consideration

The card keeps three bands for both sections, but only the non-filer 236K rate actually changes across them.

How the rates changed from 2025-26

Before the Finance Act 2026, filer rates were tiered by value. Sellers paid 4.5%, 5% or 5.5% under 236C, and buyers paid 1.5%, 2% or 2.5% under 236K, pkrevenue reported during the budget debate.

The budget was presented on 12 June 2026 with top filer rates cut from 5.5% to 2.75% for sellers and from 2.5% to 1.25% for buyers, Aaj News reported. The government approved the final rates later in June, and they took effect on 1 July 2026.

The Act also omitted Rule 1A of the Tenth Schedule, which created a "late filer" category with in-between rates, according to a Mettis commentary. Late filers who are on the ATL now pay filer rates.

Some early budget coverage quoted 1.5% for 236K before the final 1.25% was settled, a Baco Consultants guide notes. Rely on the FBR rate card, not on June headlines.

Worked examples

Rs20 million house, both parties filers - Buyer 236K: 1.25% × Rs20,000,000 = Rs250,000 - Seller 236C: 2.75% × Rs20,000,000 = Rs550,000

These match the figures in a Daily Pakistan breakdown for FY2026-27.

Rs20 million house, both parties non-filers - Buyer 236K: 10.5% = Rs2,100,000 - Seller 236C: 11.5% = Rs2,300,000

Rs80 million commercial plot, non-filer buyer - Value falls in the Rs50m to Rs100m band - Buyer 236K: 14.5% = Rs11,600,000 - A filer would pay 1.25% = Rs1,000,000

Rs150 million farmhouse, non-filer buyer - Buyer 236K: 18.5% = Rs27,750,000 - A filer would pay Rs1,875,000

The rate card applies the band rate to the whole value, not just the part above each threshold, as it is written.

Which value the tax is charged on

236K is charged on fair market value. 236C is charged on the gross consideration received. In both cases, FBR's valuation table under section 68 sets the floor.

For Lahore, that table is SRO 1722(I)/2024, amended for Nishtar Town (including DHA phases) in May 2026. If you declare a price below the table value, expect the tax office to use the table.

Stamp duty is a different calculation. It is a provincial charge on the DC valuation, computed inside the Punjab e-Stamping system.

How to pay 236C and 236K

1. Check ATL status for both buyer and seller by sending "ATL" followed by a space and the 13-digit CNIC to 9966, as FBR explains.
2. Confirm the value from the FBR valuation table and the agreed price, and use the higher.
3. Generate the payment slip (PSID) for each section from FBR's IRIS portal, or ask the registrar's or society's tax desk to generate it.
4. Pay at a bank or through internet banking against the PSID. Keep the computerised payment receipt (CPR).
5. Submit the CPR to the sub-registrar, society or authority with the transfer documents.
6. Claim the tax in your annual income tax return for the year.

Because the society or registrar is the collecting agent, it will ask for proof of both taxes before it issues a transfer letter or registers the deed. Bring the CPRs on transfer day.

Adjustable or final tax

236K paid by a buyer is advance tax and is generally adjustable against the buyer's income tax liability for the year. 236C paid by a seller is generally credited against tax on the sale, including capital gains tax under section 37.

One budget summary reported that 236C cannot be adjusted, and becomes a minimum tax, where the property is sold within one year of purchase. We could not confirm this in the rate card, so check it with an adviser before a quick resale.

Common mistakes

• Quoting old rates. Some agents still use 2025-26 slabs. From 1 July 2026, filers pay 1.25% and 2.75% flat.
• Checking ATL too late. Your status on the transaction date decides the rate. Being added to the ATL a week later does not refund the difference.
• Paying under the wrong section. A PSID for 236C cannot be used for 236K. Each party pays its own section.
• Splitting the deal to dodge a band. Breaking one property into separate deeds to stay under Rs50 million can attract scrutiny.
• Not keeping the CPR. Without it, you cannot claim the tax in your return.

This guide is general information; confirm current rates with FBR/the bank/a lawyer before you pay.

Sources