Karachi, December 6, 2024 – The Federal Board of Revenue (FBR) has announced updated advance tax rates on the purchase and transfer of immovable property for the tax year 2025. These updates, implemented under the Finance Act, 2024, have been incorporated into the Income Tax Ordinance, 2001, and specifically explained under Section 236K of the ordinance. Section 236K outlines the rules for collecting advance tax at the time of property registration, transfer, or allotment, according to the FBR. As per the revised provisions: Key Provisions of Section 236K 1. Collection of Advance Tax Sub-section (1) mandates that individuals responsible for registering, recording, or attesting the transfer of immovable property must collect advance tax from the buyer or transferee. This applies to local authorities, housing societies, cooperative societies, public and private real estate projects, and registrars of properties. 2. Adjustable Advance Tax Sub-section (2) clarifies that the advance tax collected is adjustable against the purchaser’s final tax liability. However, for non-resident individuals holding a Pakistan Origin Card (POC), National Identity Card for Overseas Pakistanis (NICOP), or Computerized National Identity Card (CNIC), who acquire property through Foreign Currency Value Accounts (FCVA) or NRP Rupee Value Accounts (NRVA), the tax collected is considered a final discharge of liability. 3. Tax on Installments Sub-section (3) specifies that for properties purchased through installment plans, advance tax is collected with each installment. Once the cumulative tax amount equals the required rate, no additional tax will be collected when the property is transferred to the buyer. 4. Exemption for…