Savers and investors

Tax on bank profit, national savings, dividends, shares and mutual funds. Each answer below explains one point in plain words, works through an example, and links the exact section of the law it relies on.

• How much more tax is deducted on bank and National Savings profit if I am not on the Active Taxpayers List?For savers not on the Active Taxpayers List, the section 151 rate doubles: 40% on bank profit and 30% on National Savings profit, with a filer comparison.
• What must the withholding tax certificate from my bank show, and why do I need it?Section 164 makes your bank give a certificate and CPR for tax it deducts. Section 168 treats that tax as paid by you, and the CPR copies go with your return.
• How much capital gains tax is deducted when I redeem mutual fund units?The capital gains tax a mutual fund deducts when you redeem units in tax year 2027: 15% for individuals, 25% for companies in non-stock funds, and the six-year rule.
• What is the capital gains tax on shares sold on the Pakistan Stock Exchange? (Share bechne par kitna tax lagta hai?)Section 37A taxes gains on PSX shares as a separate block. Shares bought on or after 1 July 2024 are taxed at 15% for persons on the Active Taxpayers' List.
• Is capital gains tax on shares higher if I am not on the Active Taxpayers List?For shares bought on or after 1 July 2024, sellers not on the Active Taxpayers' List on both dates pay Division I slab rates with a 15% floor, not a flat 15%.
• How much tax is deducted on dividends if I am not on the Active Taxpayers List?If you are not on the Active Taxpayers List, the Tenth Schedule doubles the section 150 dividend rate, so 15% becomes 30%. Section 169(4) caps the final tax.
• What is the tax rate on dividends in tax year 2027, and why do some companies' dividends get a different rate?Dividends in tax year 2027 are taxed at 15% in most cases, 7.5% for qualifying IPP dividends and 25% where the paying company had no tax payable. Here is why.
• How does NCCPL calculate and collect capital gains tax on my shares?How NCCPL computes and collects capital gains tax on listed shares under section 100B and the Eighth Schedule, and when section 37 applies instead.
• Is the tax deducted on my dividend final, or is dividend added to my other income?Tax on dividends under section 5 is a final tax under section 8. The dividend is not added to your slab income, and no expense or loss is set against it.
• Is profit on National Savings certificates, including Defence Savings and Regular Income Certificates, taxable?National Savings profit is taxable. Section 151 has 15% deducted for filers in tax year 2027, and section 7B makes it a final tax up to Rs. 5 million.
• Is the tax deducted on my bank profit final, and what changes if my profit is above Rs. 5 million?Bank profit up to Rs. 5 million is taxed as a final tax under sections 7B and 8. Above that, the section 151 deduction is a minimum tax and slab rates apply.
• Can I set off a loss on shares against gains or carry it forward?Section 37A(5) lets a loss on shares reduce only gains on other securities, and carries unused losses from tax year 2019 onward forward for three years.
• Does capital gains tax on shares depend on how long I held them or when I bought them?Division VII sets share CGT by purchase date: 0% before July 2013, 12.5% to June 2022, 15% down to 0% by holding period to June 2024, then a flat rate.
• How much tax does the bank deduct on my savings or term deposit profit in tax year 2027?Banks deduct 20% tax on profit paid on savings, term and fixed deposit accounts under section 151. How the rate works for tax year 2027, with a worked example.
• What tax applies to profit on Behbood Savings Certificates and the Shuhada Family Welfare Account?Behbood and Shuhada Family Welfare Account profit has no tax deducted at source. It is taxed at normal slab rates, and the tax cannot exceed 5% of the profit.
• Are bonus shares taxed in Pakistan, even though no cash is received?Section 236Z makes a company withhold 10% of bonus shares until the shareholder pays tax equal to 10% of their value, and treats that tax as final tax.
• Who pays tax on cash withdrawal from a bank, above what amount, and do filers or ATM withdrawals count?Section 231AB taxes cash withdrawals only for people not on the Active Taxpayers List: 0.8% once a day's total passes Rs. 50,000. Who pays and how to adjust it.
• How much advance tax is charged on international debit and credit card transactions?Banks collect 0.5% advance tax under section 236Y on card payments to people outside Pakistan in tax year 2027, doubled for non-ATL cardholders, and it is adjustable.
• How much tax is deducted on mutual fund and money market fund dividends?Clause (ba) taxes mutual fund dividends at 25% on the debt-derived share and 15% on the equity-derived share, with 29% on the debt share for corporate holders.
• Is profit on T-bills, PIBs and Sukuk taxable for individuals?Profit on T-bills and PIBs is taxed at 15% for individuals under section 151, sukuk returns at 10% or 12.5%, and a custodian deducts 20% of gains on disposal.