Figures in this guide were checked against the cited official documents on 14 November 2026 (Asia/Karachi).

People still search for section 236P when they mean tax on taking cash out of a Pakistani bank account. That section is not the current rule. This guide sets out what the official texts in force for Tax Year 2027 actually say, and how TaxToolSet compares the ATL and non-ATL cost.

This is general information, not tax advice and not an FBR determination. TaxToolSet is independent of the Federal Board of Revenue. Tax facts on this page are reviewed by a Chartered Accountant. The original statute prevails if a rate card or this guide differs from the law.

Section 236P has been omitted

The FBR compilation of the Income Tax Ordinance, 2001, amended up to 20 February 2026, records section 236P as omitted by the Finance Act, 2021. The omitted section was “Advance tax on banking transactions otherwise than through cash” (instruments such as demand drafts, pay orders and certain non-cash bank instruments), not cash withdrawal itself.

Finance Act 2026 does not mention section 236P and does not re-enact it. The FBR Tax Year 2027 withholding rate card (updated up to 30 June 2026 as per Finance Act 2026) also does not list 236P.

If a bank, a spreadsheet or an older article still quotes 236P for cash withdrawals, treat that as outdated and check the current section in the Ordinance and the rate card.

The current cash-withdrawal provision is section 231AB

The same FBR Ordinance compilation, at section 231AB (“Advance tax on cash withdrawal”), states that every banking company shall deduct advance adjustable tax at the rate of 0.8% of the cash withdrawal from a person whose name is not appearing in the Active Taxpayers' List, on the sum total of the payments for cash withdrawal in a day, exceeding fifty thousand rupees.

The explanation in that section says the fifty thousand rupees is the aggregate cash withdrawals in a single day.

A footnote in the compilation records that the 0.8% figure was substituted (from 0.6%) by the Finance Act 2025. Finance Act 2026 does not amend section 231AB. The Tax Year 2027 rate card prints section 231AB as 0.80% in the Non-ATL column, with a dash in the ATL column, for “Cash withdrawal by a person whose name is not appearing in the Active Taxpayers' List.”

FBR Circular No. 2 of 2023 (Income Tax, 26 July 2023), item 16, confirms that if the aggregate cash withdrawn in a single day exceeds Rs 50,000, the tax is deducted on the entire amount of cash withdrawn, not only the excess over Rs 50,000. Its illustration (at the then rate of 0.6%) shows Rs 50,000 as nil, and Rs 50,500 taxed at Rs 303, which is 0.6% of 50,500. FBR Circular No. 01 of 2025-26 (2 August 2025) records that Finance Act 2025 increased the rate to 0.8% of the amount of cash withdrawn. Finance Act 2026 did not amend section 231AB, so that entire-amount method continues at 0.8%. If a bank advice note shows a different figure, confirm it with the bank or a Chartered Accountant.

TaxToolSet's filer vs non-filer calculator therefore applies 0% for ATL and 0.8% for non-ATL when the cash-withdrawal amount entered is over PKR 50,000, and it applies that rate to the entered amount (the entire day's aggregate).

The tax is described in the Ordinance, and in Circular No. 2 of 2023, as advance adjustable tax against the person's tax liability for the tax year, not a final tax. Confirm how it is treated in your return with a Chartered Accountant. The same 2023 circular states that the tax is not deducted on withdrawals by the Federal Government or a Provincial Government, a foreign diplomat or diplomatic mission in Pakistan, or a person who produces a certificate from the Commissioner that their income during the tax year is exempt.

Worked example

If a person who is not on the ATL withdraws PKR 200,000 in aggregate in one day (which exceeds PKR 50,000), the 0.8% rate applies to the entire PKR 200,000, not only the PKR 150,000 excess:

  • ATL: PKR 0
  • Non-ATL at 0.8% of 200,000: PKR 1,600

If the same day's aggregate is PKR 40,000, TaxToolSet does not apply the 0.8% row, because the official threshold is not crossed.

You can also look up other current withholding rows on the withholding tax calculator.

What this guide does not cover

  • Provincial or bank service charges that are not section 231AB.
  • Omitted historical sections 231A and 231AA (both omitted by Finance Act 2021). Those older cash and cash-instrument rules are not the TY2027 rate-card row.
  • Whether a particular account is carved out. Circular No. 2 of 2023 lists the government, diplomat and Commissioner-certificate cases above; confirm any other exemption on the current Ordinance text and with the bank.

How ATL status is obtained is covered in the how to become a filer guide.

Sources