Bank Transaction Tax Calculator

The bank transaction tax calculator Pakistan - built with FBR 2025-26 rates - computes withholding tax on cash deposits, PTM/clearing purchases and banking instruments under Sections 231-233 and 236. Enter your transaction amounts and deposit the difference between filer and non-filer treatment.

In Pakistan, the bank deducts withholding tax from your transactions automatically. Whether cash exceeding 5,000,000 in a year is recorded, or foreign property purchase, each has its own chart. This calculator walks through settlements for everyday accounts.

Enter the annual amount you move through cash withdrawals and banking instruments, and toggle your filer status. The calculator applies the current FBR rates for each transaction class - cash withdrawals, bank drafts, pay orders and funds transfers - and shows the tax your bank deducts automatically.

• Enter annual cash transaction volumes.
• Toggle your filer status for each line.
• Compare what you pay now versus after filing.

Banks apply the withholding rates of Section 231AB and related provisions at the time of every transaction. Cash withdrawals above the daily free threshold attract 0.6% for non-filers while filers pay nothing on cash drawn from their own accounts. Purchases of banking instruments (demand drafts, pay orders) are charged 0.3% for filers and 0.6% for non-filers, and electronic funds transfers are recorded on the same differential.

The tax is collected by the bank at the counter and deposited with FBR - the entry appears on your monthly bank statement. Because it is an advance (adjustable) tax, a filing taxpayer recovers the amount through the annual return.

• Signal the transaction type - cash, instrument or transfer.
• Apply the filers or the non-filers rate from the chart.
• Multiply the amount by the rate and deduct from the proceeds.

A filer withdraws Rs 200,000 in cash in one day. The first Rs 50,000 is free and the rest is also free for filers - the withdrawal is simply not taxed. A non-filer doing the same withdrawal pays 0.6% of Rs 150,000 = Rs 900 on a single day.

In the same year, that non-filer also buys a bank draft of Rs 1,000,000 to pay a supplier. The draft attracts 0.6% = Rs 6,000, whereas a filer pays Rs 3,000. Small percentages, very real money, every single month.

• Believing cash deposits are taxed - the withholding applies to withdrawals and instruments above the thresholds, not to depositing money.
• Assuming the daily free limit applies per account - the exemption is per person per day across accounts.
• Not claiming the advance tax - these amounts are adjustable in the IRIS return for filers.