The Federal Board of Revenue (FBR) has issued amended income tax rules for the new fiscal year, introducing changes that will increase the tax deducted on bank withdrawals by non-filers. Individuals not listed in the Active Taxpayers List (ATL) will face an additional tax burden.
According to the FBR’s notification, daily cash withdrawals exceeding Rs 50,000 by non-filers will now be subject to a 0.8% withholding tax, up from the previous 0.6%. Earlier, the Senate Standing Committee on Finance had proposed applying the 0.8% rate to withdrawals above Rs 75,000 instead of Rs 50,000.
The revised rules authorize all banking companies to collect this adjustable advance tax from non-filers. The changes also affect real estate transactions: the withholding tax rate for property buyers has been reduced by 1.5% as a relief measure, while tax for sellers or those transferring property has been increased by 1.5% across all value slabs. This increase is aimed at adjusting capital gains earned by sellers.
In addition, if a property has been owned for at least 15 years, Section 236C withholding tax will not apply, provided this ownership is declared in the income tax return. Similarly, if the owner has lived in the property, such as a house or apartment for the entire 15-year period, the withholding tax exemption will also apply.
