Written by Akhter Syed in Taxation Section 236K of the Income Tax Ordinance 2001 outlines advance tax collection requirements for property buyers, transferees and overseas Pakistanis. The Federal Board of Revenue (FBR) has defined the rules for advance tax collection on the purchase or transfer of immovable property during tax year 2027. According to the Income Tax Ordinance 2001, updated up to June 30, 2026, Section 236K requires advance tax to be collected from buyers or transferees when an immovable property is registered, recorded or transferred. Under Section 236K, any person responsible for registering, recording or attesting a property transfer must collect advance tax at the rates specified in Division XVIII of Part IV of the First Schedule. The provision covers registration and transfer authorities, housing authorities, housing societies, co-operative societies, public and private real estate projects, joint ventures, private commercial concerns and property registrars. Adjustable advance tax and overseas Pakistanis The advance tax collected under Section 236K is adjustable against the taxpayer’s overall tax liability. However, a special provision applies to non-resident individuals holding a Pakistan Origin Card (POC), National Identity Card for Overseas Pakistanis (NICOP) or Computerised National Identity Card (CNIC). The tax collected from such individuals…