Text of ITO Section 236C

Advance Tax on sale or transfer of immovable property. —
 

(1) Subject to sub-section (2A), any person responsible for registering, recording, or attesting transfer of any immovable property shall, at the time of registering, recording, or attesting the transfer, collect from the seller or transferor advance tax at the rate specified in Division X of Part IV of the First Schedule:

Explanation — For removal of doubt, it is clarified that the person responsible for registering, recording, or attesting the transfer includes the person responsible for registering, recording, or attesting the transfer for local authority, housing authority, housing society, co-operative society, public and private real estate projects registered/governed under any law, joint ventures, private commercial concerns, and registrar of properties.

Provided that this sub-section shall not apply to a seller, being the dependent of a Shaheed belonging to Pakistan Armed Forces, or a person who dies while in the service of the Pakistan Armed Forces or the service of Federal or Provincial Government, or a war-wounded person while in the service of Pakistan Armed Forces or Federal or Provincial Government, or an ex-serviceman and serving personnel of armed  forces or ex-employees or serving personnel of Federal and Provincial Government], in respect of first sale of immovable property acquired from or allotted by the Federal Government or Provincial Government or any authority duly certified by the official allotment authority, and the property acquired or allotted is in recognition of or for services rendered by the Shaheed or the person who dies in service 1 [or a war wounded person while in service of Pakistan Armed Forces or Federal or Provincial Government or an ex-serviceman and serving personnel of armed forces or ex-employees or serving personnel of Federal and Provincial Government]

Provided further that if the seller or transferor is a non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who had acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA) maintained with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan, the tax collected under this section from such persons shall be final discharge of tax liability in lieu of capital gains taxable under section 37 earned by the seller or transferor from the property so disposed of.

(2) The advance tax collected under sub-section (1) shall be adjustable:

Provided that where immovable property referred to in sub-section (1) is acquired and disposed of within the same tax year, the tax collected under this section shall be minimum tax.

(2A) Notwithstanding anything contained in any other law for the time being in force, any person responsible for registering, recording, or attesting the transfer of any immovable property shall not register, record, or attest transfer unless the seller or transferor has discharged its tax liability under section 7E and evidence to this effect has been furnished to the said person in the prescribed mode, form, and manner.

(4) Sub-section (1) shall not apply to:
(a) A seller, if the seller is dependent on:
(i) A Shaheed belonging to Pakistan Armed Forces; or
(ii) A person who dies while in the service of the Pakistan Armed Forces or the Federal and Provincial Governments; and
(b) To the first sale of immovable property which has been acquired or allotted as an original allottee, duly certified by the official allotment authority.