Text of ITO Section 236K

 Advance tax on purchase or transfer of immovable property.

(1) Any person responsible for registering, recording, or attesting the transfer of any immovable property shall, at the time of registering, recording, or attesting the transfer, collect from the purchaser or transferee advance tax at the rate specified in Division XVIII of Part IV of the First Schedule.

Explanation:
For the 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 transfers for local authorities, housing authorities, housing societies, co-operative societies, public and private real estate projects registered/governed under any law, joint ventures, private commercial concerns, and registrar of properties.

(2) The advance tax collected under sub-section (1) shall be adjustable.
Provided:
If the buyer or transferee is a non-resident individual holding a Pakistan Origin Card (POC), National ID Card for Overseas Pakistanis (NICOP), or Computerized National ID Card (CNIC) who has acquired the 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 the final discharge of tax liability for such buyer or transferee.

(3) Any person responsible for collecting payments in installments for the purchase or allotment of any immovable property where the transfer is to be effected after the payment of all installments, shall, at the time of collecting installments, collect from the allotee or transferee advance tax at the rate specified in Division XVIII of Part IV of the First Schedule.
Provided:
Where tax has been collected along with installments, no further tax under this section shall be collected at the time of the transfer of property in the name of the buyer from whom tax has been collected in installments, which is equal to the amount payable under this section.

(4) Nothing contained in this section shall apply to a scheme introduced by the Federal Government, Provincial Government, or an Authority established under a Federal or Provincial law for expatriate Pakistanis.
Provided:
The mode of payment by expatriate Pakistanis in the said scheme or schemes shall be in foreign exchange remitted from outside Pakistan through normal banking channels.