Written by Shahnawaz Akhter Are you thinking about buying or selling immovable property in Pakistan in 2026? 🏠Before you finalize any deal, it is crucial to understand the advance tax structure imposed by the Federal Board of Revenue (FBR). Many buyers and sellers face unexpected costs simply because they are unaware of applicable tax rates. This guide explains Section 236C of the Income Tax Ordinance, 2001 (updated for Tax Year 2026) in a clear and practical way. What Is Section 236C? Section 236C empowers the FBR to collect advance income tax at the time of sale or transfer of immovable property. The tax is collected by the authority responsible for: • Registering • Recording • Attesting the transfer of property This includes registrars, housing authorities, housing societies, cooperative societies, real estate projects, joint ventures, and private developers. Who Pays This Tax? 🔹 The seller or transferor of the property is responsible for paying the advance tax at the time of registration or transfer. 🔹 The tax is adjustable against final tax liability, except where: • The property is bought and sold within the same tax year (minimum tax applies). Mandatory Condition: Section 7E Compliance 🚨 Important Update for 2026 No property transfer can be registered unless the seller has fully discharged tax liability under Section 7E and provided proof in the prescribed manner. Special Exemptions You Should Know You may be exempt from Section 236C if: ✔ You are a dependent of a Shaheed of Pakistan Armed Forces ✔ You are a war-wounded person or ex-serviceman ✔ You are a serving or retired federal/provincial government employee ✔ It is the first sale of an officially allotted property Overseas Pakistanis Benefit 🌍 If you are a non-resident individual holding:…