About Property Transfer Tax (236C & 236K)
When immovable property changes hands in Pakistan, the Income Tax Ordinance 2001 requires advance income tax to be collected at the time of transfer. Section 236C is collected from the seller on the sale or transfer of property, and Section 236K is collected from the purchaser on the purchase or transfer of property. Both are collected by the registering, recording, or attesting authority.
Who Pays 236C and Who Pays 236K?
- Sellers pay Section 236C advance tax on the gross consideration they receive.
- Buyers pay Section 236K advance tax on the fair market value of the property.
- In a single sale-and-purchase, the seller is assessed under 236C and the buyer under 236K, each on their own base.
- The applicable rate depends on whether the person is an active filer, a late filer, or a non-filer.
How to Use the Property Transfer Tax Calculator
- Choose whether you are buying (Section 236K) or selling (Section 236C).
- Enter the correct value: gross consideration for a sale, or fair market value for a purchase.
- Select the taxpayer status - active filer, late filer, or non-filer.
- Select Calculate transfer tax.
- Review the applicable section, taxable value used, rate, and estimated advance tax, with a short explanation of why each value and rate applies.
- Download a clean PDF result or share the calculator link when useful.
236C vs 236K: Why the Tax Base Differs
Section 236C and Section 236K are separate charging sections with separate bases. Section 236C is charged on the gross consideration received by the seller - the transaction price. Section 236K is charged on the fair market value of the property, which for most transfers is the FBR or DC notified value.
Because the bases are defined differently in law, this calculator never blends them into a single combined value. It applies the seller's gross consideration under 236C and the buyer's fair market value under 236K, and tells you which value it used.
Worked Examples: Section 236C and Section 236K
Seller Example: Section 236C Advance Tax
Assume an active-filer seller receives gross consideration of Rs 25,000,000 from the sale of immovable property. Section 236C uses the gross consideration received as the calculation base.
- Transaction
- Selling property
- Tax base
- Gross consideration received
- Gross consideration
- Rs 25,000,000
- Rate
- 2.75%
- Calculation
- Rs 25,000,000 × 2.75%
- Estimated Section 236C advance tax
- Rs 687,500
This is an estimate of Section 236C advance income tax only. It is not a calculation of capital gains tax or the seller's complete tax liability.
Buyer Example: Section 236K Advance Tax
Assume an active-filer buyer purchases immovable property with a fair market value of Rs 25,000,000. Section 236K uses the fair market value of the property as the calculation base.
- Transaction
- Buying property
- Tax base
- Fair market value
- Fair market value
- Rs 25,000,000
- Rate
- 1.25%
- Calculation
- Rs 25,000,000 × 1.25%
- Estimated Section 236K advance tax
- Rs 312,500
This is an estimate of Section 236K advance income tax only. Provincial stamp duty, CVT, registration fees, mutation fees and other transaction costs are not included.
Section 236C Rates for 2026-27 (Seller)
Section 236C is charged on the gross consideration received by the seller. The non-filer rate is a single flat rate at every value band.
| Taxpayer status | Rate | Applied to |
|---|---|---|
| Active filer (ATL) | 2.75% | Flat rate on gross consideration received. |
| Late filer | 2.75% | Same active-filer rate applies in this calculator. |
| Non-filer | 11.50% | Flat rate at every value band. |
Section 236K Rates for 2026-27 (Buyer)
Section 236K is charged on the fair market value of the property. For a non-filer, a single applicable rate is charged on the whole fair market value, tiered by the value band.
| Taxpayer status / value band | Rate | Applied to |
|---|---|---|
| Active filer (ATL) | 1.25% | Flat rate on fair market value, at every value. |
| Late filer | 1.25% | Same active-filer rate applies in this calculator. |
| Non-filer - fair market value up to Rs 50,000,000 | 10.50% | Applied to the whole fair market value. |
| Non-filer - above Rs 50,000,000 up to Rs 100,000,000 | 14.50% | Applied to the whole fair market value. |
| Non-filer - above Rs 100,000,000 | 18.50% | Applied to the whole fair market value. |
Finance Act 2026: Confirmed Headline Rates
The Finance Act 2026 substitutes a rate of 2.75% of gross consideration received under Section 236C and 1.25% of fair market value under Section 236K. These are the headline rates expressly stated in the Act for the respective tax bases.
The Finance Act 2026 alone does not reproduce the separate late-filer and non-filer rates configured in this calculator. Those selections are retained as configured calculator rates and should be checked against current FBR guidance before completing a property transaction.
Methodology and Important Notes
The calculator validates the selected transaction type, value, and taxpayer status, applies the correct base for the section (gross consideration for 236C, fair market value for 236K), and multiplies it by the applicable rate. A filer and a late filer use the same active-filer rate; a non-filer uses the higher flat rate under 236C or the tiered rate under 236K.
This calculator estimates only the selected Section 236C or Section 236K advance income tax. It does not calculate capital gains tax, Section 7E liability, provincial stamp duty, CVT, registration fees, mutation fees or other provincial and local charges.
Frequently Asked Questions
Who pays Section 236C and who pays Section 236K?
Section 236C advance tax is collected from the seller on the sale or transfer of immovable property. Section 236K advance tax is collected from the purchaser on the purchase or transfer of immovable property. In a single transaction the seller is assessed under 236C and the buyer under 236K.
What value is used for the 236C calculation?
Section 236C uses the gross consideration received by the seller - the transaction price. It does not use the FBR or DC notified value as its base in this calculator.
What value is used for the 236K calculation?
Section 236K uses the fair market value of the property, which for most transfers is the FBR or DC notified value. It does not use the buyer's negotiated price as its base in this calculator.
What is the difference between a filer, late filer and non-filer in this calculator?
An active filer is on the Active Taxpayers List and pays the active-filer rate. A late filer is on the ATL after filing late; this calculator applies the same active-filer rate to a late filer. A non-filer is not on the ATL and is charged the higher non-filer rate.
What Section 236C rates does this calculator use?
The calculator applies 2.75% for an active filer, 2.75% for a late filer and 11.50% for a non-filer under Section 236C. Finance Act 2026 expressly states the 2.75% headline rate on gross consideration received, but the Act alone does not reproduce separate late-filer and non-filer rates. Confirm the applicable rate with current FBR guidance.
What Section 236K rates does this calculator use?
The calculator applies 1.25% for an active filer and 1.25% for a late filer under Section 236K. For a non-filer, it applies 10.50% up to Rs 50,000,000, 14.50% from above Rs 50,000,000 to Rs 100,000,000, and 18.50% above Rs 100,000,000. Finance Act 2026 expressly states the 1.25% headline rate on fair market value, but the Act alone does not reproduce the separate late-filer and non-filer tiers. Confirm the applicable rate with current FBR guidance.
Does this calculator include stamp duty, CVT or registration fees?
No. The calculator estimates only Section 236C or Section 236K advance income tax. It does not include provincial stamp duty, CVT, registration fees, mutation fees or other provincial and local charges.
Does this calculator cover every property tax or transaction cost?
No. It is a focused estimate of the selected Section 236C or Section 236K advance income tax. It does not calculate the complete cost or final tax treatment of a property transaction.
Legal References and Sources
Section 236C - Advance tax on sale or transfer of immovable property
Income Tax Ordinance 2001. Rates are set in Division X, Part IV of the First Schedule.
Section 236K - Advance tax on purchase or transfer of immovable property
Income Tax Ordinance 2001. Rates are set in Division XVIII, Part IV of the First Schedule.
Finance Act 2026
Expressly states the headline Section 236C rate of 2.75% on gross consideration received and the headline Section 236K rate of 1.25% on fair market value. The Act alone does not reproduce the separate late-filer and non-filer rates configured here.
Primary source: Federal Board of Revenue Finance Act 2026 page.
This HisaabKit estimate applies the configured Section 236C and Section 236K advance-tax rates for FY 2026-27 and covers 1 July 2026 through 30 June 2027. It estimates only the selected Section 236C or Section 236K advance income tax and does not calculate capital gains tax, Section 7E liability, provincial stamp duty, CVT, registration fees, mutation fees or other provincial and local charges. It is for planning and information only, not tax or legal advice. Confirm your position with current official guidance or a qualified professional.