Can a non-filer still buy property after the Finance Act, 2025?

A non-filer can still buy property in Pakistan under the Income Tax Ordinance, 2001 as amended to 30 June 2026, but with two limits. Section 114C, added by the Finance Act, 2025, will block purchases above Rs. 100 million by “ineligible” persons once the Federal Government brings it into force. Separately, 236K is already charged at much higher rates on buyers who are not on the active taxpayers’ list.

What does the law say?

Section 114C(1)(b) says that any application by an ineligible person to the authority that registers, records or attests transfer of immovable property, “of the value exceeding the threshold given in Fifteenth Schedule, shall not be accepted or processed by such authority”. The same section covers motor vehicles, securities investments and bank cash withdrawals.

The Fifteenth Schedule, S. No. 2, sets the property threshold: fair market value “Exceeding one hundred million rupees”. It measures value as fair market value defined in clause (22AA) of section 2, which points to section 68. So the test uses the FBR notified value (or the stamp duty value where none is notified), not only the deed price.

Section 114C(4) defines the terms:

• An eligible person has filed either (i) a return for the tax year immediately before the year of the transaction, with “sufficient resources” in the wealth statement (or financial statements for a company or AOP) for the transaction, or (ii) a sources of investment and expenditure statement on the Board’s web portal declaring sufficient resources for that purchase.
• For an individual, the eligible person includes his immediate family members, meaning “his parents, spouse and dependent children”.
• An ineligible person is anyone who is not an eligible person.
• Sufficient resources is defined by reference to one hundred and thirty percent of the cash and cash-equivalent assets (cash, fair market value of gold, stocks, bonds, receivables and similar) declared in the latest wealth statement or sources statement. Capital assets already declared and exchanged for the property count to the extent of the value in the agreement.

Section 114C(2) says sub-section (1) does not apply to transactions by a non-resident person or a public company, except the cash withdrawal limit.

Section 114C(5) says the restrictions “shall come into force on such date as the Federal Government may, by notification in official Gazette, appoint”, and the notification may reduce or increase the Fifteenth Schedule thresholds.

How does it work in practice?

Until a notification is issued under section 114C(5), the property restriction in section 114C(1)(b) has no operative date. Once in force, the registrar, housing society or other recording authority must refuse to process a transfer to an ineligible buyer where the fair market value exceeds the threshold then applying.

Whether or not section 114C is in force, 236K applies to every buyer. For tax year 2027, Division XVIII sets 1.25% of fair market value for buyers on the active taxpayers’ list. For buyers not on the list, rule 1 of the Tenth Schedule substitutes these rates:

Fair market value	236K rate, not on active taxpayers’ list
Up to Rs. 50 million	10.5%
Over Rs. 50 million up to Rs. 100 million	14.5%
Over Rs. 100 million	18.5%

Worked example (illustrative figures)

Case 1: above the threshold. Imran does not file returns. He agrees to buy a house in Islamabad for Rs. 95,000,000, but the FBR notified value is Rs. 120,000,000.

• The value for section 114C is fair market value under section 68: Rs. 120,000,000.
• Rs. 120,000,000 exceeds the Rs. 100,000,000 threshold.
• Once section 114C is notified, the registering authority cannot accept or process his application. The lower deed price does not change this.

Case 2: below the threshold. Imran instead buys a flat with a fair market value of Rs. 60,000,000.

• Section 114C does not block this purchase, because the value is under Rs. 100,000,000.
• 236K as a person not on the active taxpayers’ list: Rs. 60,000,000 x 14.5% = Rs. 8,700,000.
• Had he been on the list: Rs. 60,000,000 x 1.25% = Rs. 750,000.

What if …?

What if my spouse files and I do not? For an individual, the eligible person includes the spouse, parents and dependent children. The Ordinance does not describe how a registrar verifies this.

What if I filed last year but my wealth statement shows little cash? Filing alone is not enough. Section 114C(4)(a)(i) also requires sufficient resources for the transaction. A sources of investment and expenditure statement is the other route under clause (ii).

What if I live abroad? Section 114C(2) excludes transactions by a non-resident person from the property restriction.

Common mistakes

• Treating section 114C as already in force. It depends on a notification under section 114C(5).
• Using the deed price for the Rs. 100 million test. The Fifteenth Schedule uses fair market value under section 68.
• Assuming any return makes you eligible. Section 114C(4)(a)(i) needs a return for the immediately preceding tax year and sufficient resources declared for the transaction.

What to check in the official text

Read section 114C in full, the Fifteenth Schedule, rule 1 of the Tenth Schedule and Division XVIII of Part IV of the First Schedule in the consolidated Ordinance amended to 30 June 2026. Check whether the Federal Government has issued a section 114C(5) notification, and what thresholds it sets. No such notification is held on this site.