Written by Akhter Syed in Taxation Buyers of goods and properties sold through public auctions or tenders will be required to pay advance tax under Section 236A of the Income Tax Ordinance, 2001. The Federal Board of Revenue (FBR) will collect advance tax on the sale of goods and properties through public auctions and tenders during Tax Year 2027. According to the Income Tax Ordinance, 2001, updated up to June 30, 2026, the tax will apply to buyers purchasing goods or properties through public auctions or tenders between July 1, 2026 and June 30, 2027. Section 236A of the Income Tax Ordinance requires any person conducting a public auction or auction through a tender to collect advance tax from the successful bidder. The tax will be calculated on the sale price of the goods or property at the rate specified in Division VIII of Part IV of the First Schedule. The provision covers goods and properties belonging to the government, local governments, public authorities, companies, foreign contractors, consultants, consortia and other entities. It also applies to confiscated or attached goods and properties, regardless of their ownership. The FBR…