Umair Ar Mughal

Prize bond winnings are taxable income in Pakistan — a common misconception is that the “prize” is somehow separate from ordinary tax obligations. It isn’t. How Prize Bond Winnings Are Taxed Winnings are subject to withholding tax at the time of encashment, deducted by the bank or National Savings Centre before you receive the balance. … Read more

Section 236C of the Income Tax Ordinance is the advance tax collected on the sale or transfer of immovable property in Pakistan — deducted by the registering or transferring authority at the time of transfer, not something you separately calculate and pay yourself. If you’re selling property, this is a cost you need to budget … Read more

Withholding tax is Pakistan’s mechanism for collecting tax at the source of a payment — whoever pays you (an employer, a bank, a telecom company, a property buyer) deducts a percentage before you receive the money and remits it directly to FBR. It covers dozens of transaction types, and the rates get revised almost every … Read more

Withholding tax on cash withdrawal is one of the most common ways non-filers actually feel the cost of not being on the Active Taxpayer List — every large cash withdrawal from a bank triggers a deduction, and it’s noticeably higher if you’re not a filer. How It Works Banks deduct advance tax under Section 231A … Read more

Whether you’re taxed on your worldwide income or only on your Pakistan-source income comes down to one test under the Income Tax Ordinance: how many days you spent physically present in Pakistan during the tax year. Overseas Pakistanis often assume their NICOP or overseas status automatically makes them a “non-resident” for tax purposes — it … Read more

FBR’s IRIS portal shows two different return forms for individuals — a salary return and a normal return — and picking the wrong one is one of the most common filing mistakes salaried taxpayers make. The choice isn’t optional or a matter of preference; it depends entirely on the composition of your income for the … Read more

Capital gains tax on property is one of the areas we get the most confused questions about — mainly because the rate depends on how long you’ve held the property, not just the sale price. What Counts as a Capital Gain on Property Under Section 37 of the Income Tax Ordinance, the gain is the … Read more

Every FBR payment in Pakistan — income tax, sales tax, withholding, property transfer tax, whatever it is — goes through the same mechanism: you generate a PSID (Payment Slip ID) online, then pay it via internet banking, ATM, or over the counter. There’s no separate “online payment portal” outside of this; the e-Payments section inside … Read more