Section 236C Seller Advance Tax
Applied on gross consideration received on sale or transfer.
Rs. 10,000,000 x 2.75% = Rs. 275,000 federal advance tax.
Seller Tax Examples at 2.75%
| Gross Consideration Received | Finance Act 236C Tax |
|---|---|
| Rs. 5,000,000 | Rs. 137,500 |
| Rs. 10,000,000 | Rs. 275,000 |
| Rs. 20,000,000 | Rs. 550,000 |
| Rs. 50,000,000 | Rs. 1,375,000 |
Section 236C vs Capital Gains Tax
Section 236C and CGT are different. Section 236C is collected at registration on gross sale value. CGT is calculated later on actual profit, usually in the annual FBR return.
| Item | Section 236C | Capital Gains Tax |
|---|---|---|
| When paid | At transfer/registration | In annual return |
| Basis | Gross consideration | Actual gain/profit |
| Nature | Advance tax | Final calculation of gain tax |
| Records needed | 236C challan / transfer documents | Purchase deed, sale deed, cost proof, dates |
If advance tax paid under Section 236C exceeds the final tax payable, the excess may be adjustable or refundable through the return process, depending on your full tax position and FBR processing.
Inherited Property Update
Finance Act 2026 also clarifies inherited immovable property treatment. The beneficiary's cost is the property's fair market value when it is transferred to the beneficiary. This matters when calculating gain on a later sale.