The Federal Board of Revenue (FBR) has redefined the territorial jurisdiction for advance income tax collection on property transactions in Karachi, placing the responsibility under the Regional Tax Office-1 (RTO-1). The decision, formalized through an official notification from Islamabad, aims to streamline tax monitoring across multiple city districts.

As per the revised framework, RTO-1 will now oversee tax collection under Sections 236C and 236K of the Income Tax Ordinance, 2001. The designated tax zones include Arambagh, Civil Lines, Garden, Lyari, and Saddar in District South; Baldia, SITE, Maripur, and Harbour in District Keamari; Liaquatabad in District Central; Jamshed Town in District East; Orangi Town in District West; along with Clifton, Karachi, and Manora Cantonments.

Chief Commissioner Dr. Faheem Mohammad highlighted the critical role of advance income tax on property transactions as a key revenue stream. He urged sub-registrars operating within the revised jurisdiction to ensure compliance with FBR’s official property valuation table.

Dr. Faheem further emphasized that tax collection on property sales and purchases must strictly adhere to the prescribed rates outlined in the Income Tax Ordinance. This move aims to enhance transparency and optimize revenue generation from Karachi’s real estate sector.