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The Federal Board of Revenue (FBR) has introduced amendments to income tax regulations for the fiscal year 2025-26, aiming to expand the tax base and curb non-compliance.
Under the revised rules, non-filers withdrawing more than PKR 50,000 daily from bank accounts will face a 0.8% withholding tax, up from the previous 0.6%. The Senate’s Finance Committee had suggested raising the threshold to PKR 75,000, but the limit remains unchanged.
Banks are now authorized to deduct advance adjustable tax from non-filers directly. The changes also target undocumented cash transactions, encouraging individuals to file returns.
For real estate transactions, buyers will see a 1.5% cut in withholding tax, while sellers or transferors will face a 1.5% increase across all slabs to adjust capital gains. Properties held for over 15 years and declared in tax returns will be exempt from withholding tax if used as a primary residence. These updates are reflected in Sections 236C and 236K of the Income Tax Ordinance.
Additionally, the FBR clarified audit immunity rules: taxpayers whose cases were selected for audit within the past three years will not be selected again during that period.
In related developments, the Khyber Pakhtunkhwa Revenue Authority (KPRA) met with Haripur’s Wedding Hall Association to discuss sales tax compliance, urging timely payments and accurate monthly returns.
