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How to Generate Reduced Property Tax Challan Online for Overseas Pakistanis

If you're an Overseas Pakistani planning to buy or sell property in Pakistan, recent tax reforms have made the process easier and more beneficial. The Federal Board of Revenue (FBR) now allows streamlined tax challan generation and reduced tax rates for non-resident individuals.

If you’re an Overseas Pakistani planning to buy or sell property in Pakistan, recent tax reforms have made the process easier and more beneficial. The Federal Board of Revenue (FBR) now allows streamlined tax challan generation and reduced tax rates for non-resident individuals. Here’s a comprehensive step-by-step guide to help you generate an online property tax challan and benefit from the latest tax relief initiatives.


Generate Online Tax Challan

Generate an online property tax challan for overseas Pakistanies to get benefit from the latest tax relief initiatives by following below steps;

  • Navigate to the e-Payment tab on IRIS 2.0
  • Choose “Tax on Immovable Property” from the left menu.
  • Enter your details as a non-resident (select “Non-Resident”).
  • Provide your NICOP/POC number.
  • Specify the property (e.g., plot size, location).
  • Select the relevant authority (e.g., DHA, Punjab Housing Authority).
  • Add the assessed property value. Ensure accuracy as overvaluation can lead to higher taxes.
  • Upload your proof of overseas identity (e.g., POC copy).

Submit the Challan: After filling in all sections, click Submit to generate the payment challan.

Upon submission, the system generates a provisional psid for the case. This PSID is forwarded to the CCIR (Chief Commissioner Inland Revenue).

Verification Workflow:

  • The CCIR assigns the case to the relevant CIR (Commissioner Inland Revenue).
  • The CIR verifies the taxpayer’s non-resident status and the authenticity of the uploaded documents.

Approval or Rejection:

  • If satisfied with the verification, the CIR approves the case, granting the exemption to the taxpayer.
  • If the CIR finds discrepancies, the exemption may be denied.

Time Frame: CCIRs are required to process the verification on priority basis within one business day.

  • Once the case is decided, the taxpayer is notified via SMS and email about the outcome.
  • If approved, the exemption under Clause 111AC is applied to the CPR, enabling the taxpayer to proceed with the transaction without the relevant tax deduction.

Updated Tax Rates for Overseas Pakistanis (2026)

Equalized rates now apply to all overseas Pakistanis, regardless of filing status. Different brackets may apply for high-value properties (over PKR 5 crore or 10 crore). Advance tax rates on sale and/or purchase of property by overseas Pakistanis below 50 million are;

When Purchasing Property

Category Previous Rate New Rate
Filer 1.5% 1.5%
Late Filer 6% 1.5%
Non-Filer 10% 1.5%

When Selling Property

Category Previous Rate New Rate
Filer 4.5% 4.5%
Late Filer 6% 4.5%
Non-Filer 12% 4.5%

Frequently Asked Questions (FAQs)

1. Who is Eligible for the Reduced Tax Rates?

All Overseas Pakistanis — whether they are filers, late filers, or non-filers — are eligible for these equalized property tax rates.

2. Why Has the Government Aligned Tax Rates for All Overseas Pakistanis?

This step encourages foreign investment in Pakistan’s real estate sector and reduces compliance hurdles for expatriates.

3. Do I Need to File a Tax Return to Benefit from the Reduced Rates?

No. These reduced rates apply even if you haven’t filed your tax return.

4. Is FBR Registration Required to Avail the Benefit?

Not necessarily. The reduced rates apply to Overseas Pakistanis irrespective of registration status.


Final Thoughts

Pakistan’s tax system has introduced significant relief for overseas investors in real estate. By following the correct steps and generating your tax challan online, you can take full advantage of exemptions and reduced tax rates. If you’re a non-resident planning a property transaction, filing your challan through the FBR system is now quicker, easier, and more beneficial than ever.

Faiza Ehsan
Faiza Ehsan
Articles: 72

4 Comments

  1. My brother and I, both overseas Pakistanis with NICOP, have purchased a property in Lahore worth PKR 65 million. We signed the Bayana agreement on July 5th, 2025. We’ve sent remittances to our sibling’s bank account for this property using various methods: bank-to-bank transfers, money transfer services like MoneyGram and Western Union, and exchanging foreign currency while traveling. We’re paying from our sister’s account in Pakistan, and the property will be transferred to my overseas brother with non-filer status. What taxes do we need to pay on this purchase, and are there any specific money trail requirements? Is it mandatory to pay from the buyer’s account?

  2. I have found this information very useful and beneficial for those who are not aware.This info is enough has all the answers to my questions I had in my mind.
    Excellent work has been done and share with everyone.

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