ISLAMABAD – The federal government has decreased the taxes received under Section 263C and 236K of the Income Tax Ordinance on property transactions from July 2026.
As the Finance Act 2026-27 has come into effect, this write-up carries details of how much tax is paid by the buyers and sellers on transaction of a property with DC value of Rs5 million.
There are different slabs for filers and non-filers as the latter have to pay higher charges.
According to the revised rates, the seller is required to pay advance tax under Section 236C of the Income Tax Ordinance. It is 2.75 percent for filers and 5.5 percent for non-filers.
Seller 236C Tax on Rs5 Million Property
In case of selling a property worth Rs5 million at DC rate, a filer would pay tax at 2.75 percent, amounting to Rs137,500, while a non-filer would pay 5.5 percent, or Rs275,000.
Buyer 236K Tax on Rs5 Million Property
For the buyer, advance tax under Section 236K has been revised to 1.25 percent for filers, amounting to Rs62,500, and 2.5 percent for non-filers, or Rs125,000.
Other estimated charges include 1 percent stamp duty of Rs50,000, approximately Rs10,000 in registration fees, Rs5,000 for PLRA or mutation charges, Rs1,000 for biometric verification, and Rs2,000 in service charges.
Based on these estimates, the buyer’s total official expenses come to approximately Rs130,500 for a filer and Rs193,000 for a non-filer.
The actual amount payable may vary depending on the district, the nature of the property, the applicable DC valuation, and other local factors. If the DC value is higher than the market value, taxes will be calculated on the DC value.
