FBR issues new tax regulations for non-filers – SUCH TV

The Federal Board of Revenue (FBR) has introduced amendments to the income tax regulations for the fiscal year 2025-26, aiming to expand the tax base and curb non-compliance.

As per official documents, non-filers withdrawing more than PKR 50,000 in a day from their bank accounts will now be charged a 0.8% withholding tax  an increase from the previous 0.6% rate.

The updated tax rules target undocumented cash transactions and are designed to encourage individuals to file their tax returns.

Although the Senate’s Finance Committee had suggested raising the withdrawal threshold to PKR 75,000, the final rule retains the PKR 50,000 limit.

All banking companies have been authorised to deduct this advance adjustable tax from non-filers under the new provision.

FBR has also revised tax rules for real estate transactions:

Buyers of the property will benefit from a 1.5% reduction in withholding tax.

Sellers or transferors will face a 1.5% addition in tax with all slabs, planned to adjust capital gains on property sales.

Revised tax rules are reflected in Sections 236C and 236K of the Income Tax Ordinance.

Individuals who have had property for more than 15 years and have declared it in their tax returns will be released from withholding tax under Section 236C.

If the owner has lived in the property during this period, the exclusion still applies.

In addition to the new revised income tax rules, FBR has clarified audit immunity rules: taxpayers whose cases were selected for audit in any of the past three years will not be selected again during that period.

Earlier, a team of Khyber Pakhtunkhwa Revenue Authority (KPRA) headed by Assistant Collector Hizbullah Khan, held a meeting with the Wedding Hall Association of Haripur at the Sub-Office.

During the meeting, the KPRA team discussed matters related to Sales Tax on Services.

During the session, the Assistant Collector advised all wedding hall owners to ensure the timely payment of tax and accurate submission of their monthly sales tax returns under the law.