Tenth Schedule: Tenth Schedule

1[THE TENTH SCHEDULE (See section 100BA) RULES FOR PERSONS NOT APPEARING IN THE ACTIVE TAXPAYERS’ LIST 1. Rate of deduction or collection of tax. – Where tax is required to be deducted or collected under any provision of this Ordinance from persons not appearing in the active taxpayers’ list, the rate of tax required to be deducted or collected, as the case may be, shall be increased by hundred percent of the rate specified in 2[ ] this Ordinance 3[: Provided that the tax required to be collected under section 231B shall be increased by two hundred percent of the rate specified in First Schedule in case of persons not appearing in the active taxpayers’ list: 4[Provided further that the tax required to be collected under section 236K shall be at the rates set out in the following table, in case of persons not appearing in the active taxpayers‘ list: – TABLE S. No. Fair Market Value of Immovable Property Tax Rate (1) (2) (3) 1 Where the fair market value does not exceed 5 [10.5%] Rs. 50 million 2 Where the fair market value exceeds Rs. 50 million 6[14.5%] but does not exceed Rs. 100 million 3 Where the fair market value exceeds Rs. 100 7[18.5%]: million 1 New “Tenth Schedule” inserted though Finance Act, 2019. 2 The expression “the First Schedule to” omitted by the Finance Act, 2024. 3 The full stop substituted with a colon and two provisos added by the Finance Act, 2022. 4 The Second Proviso substituted by the Finance Act, 2024. The substituted proviso read as follows: “[Provided further that the tax required to be collected under section 236K shall be increased by two hundred and fifty percent of the rate specified in Division XVIII of Part IV of the First Schedule in case ” of persons not appearing in the active taxpayers.] 5 The expression “12%” substituted by the Finance Act, 2025. 6 The expression “16%” substituted by the Finance Act, 2025. 7 The expression “20%” substituted by the Finance Act, 2025. 763 Tenth Schedule ________________________________________ Provided also that the tax required to be collected or deducted, under sections specified in column (2) against transactions specified in column (3) shall be at the rates specified in column (4) of the following Table, in case of persons not appearing in the active taxpayers‘ list: – S. No. Section Description Tax Rate (1) (2) (3) (4) 1[ - - ] 2 Section 236C On the gross amount of 2[11.5%] consideration received on sale or transfer of immovable property 3 Section 236G On the gross amount of sale to 2% distributors, dealers or wholesalers other than sale of fertilizer. 4 Section 236H On the gross amount of sale to 2.5%] retailers 3[1A. Rate of deduction or collection of tax from persons who are appearing on active taxpayers’ list but have not filed return by the due date. – Where tax is required to be collected in respect of persons appearing on the active taxpays‘ list who have not filed the return by the due date specified in section 118 or by the due date as extended under section 119 or 214A, the rate of tax shall be – (a) as per rates set out in the following Table in case of tax to be collected under section 236C; S. No. Gross Amount of Consideration Received Tax Rate (1) (2) (3) 1 Where the gross amount of consideration received 4[7.5%] does not exceed Rs. 50 million 2 Where the gross amount of consideration received 5[8.5%] exceeds Rs. 50 million but does not exceed Rs. 100 million 1 S. No. 1 and entries relating thereto in columns (2), (3) and (4) omitted by the Finance Act, 2025. . the omitted S. No. read as follows: “1 Section 151 On yield or profit on debt 35%” 2 The expression “10%” substituted by the Finance Act, 2025. 3 Rule 1A inserted by the Finance Act, 2024. 4 The expression “6%” substituted by the Finance Act, 2025. 5 The expression “7%” substituted by the Finance Act, 2025. 762 Tenth Schedule ________________________________________ 3 Where the gross amount of consideration received 1[9.5%]: exceeds Rs. 100 million (b) as per rates set out in the following Table in case of tax to be collected under section 236K: S. No. Fair Market Value of Immovable Property Tax Rate (1) (2) (3) 1 Where the fair market value does not exceed 2[4.5%] Rs. 50 million 2 Where the fair market value exceeds Rs. 50 million 3[5.5%] but does not exceed Rs. 100 million 3 Where the fair market value exceeds Rs. 100 4[6.5%]: million Provided that the provisions of this rule shall not apply to a person who has filed return by the due date specified in section 118 or by the due date as extended under section 119 or section 214A for all of the last three tax years preceding the tax year for which the return has not been filed by the due date specified in section 118 or by the due date as extended under section 119 or 214A.] 2. Persons not required to file return or statement. – (1) Where the withholding agent or the person from whom tax is required to be collected or deducted is satisfied that a person not appearing in the active taxpayers’ list was not required to file a return of income under section 114, 5[ ] as the case may be, he shall before collecting or deducting tax under this Ordinance, furnish to Commissioner a notice in writing electronically setting out - (a) the name, CNIC or NTN and address of the person not appearing in the active taxpayers’ list’ (b) the nature and amount of the transaction on which tax is required to be collected or deducted; and (c) reason on the basis of which it is considered that the person was not required to file return or statement, as the case may be. 1 The expression “8%” substituted by the Finance Act, 2025. 2 The expression “6%” substituted by the Finance Act, 2025. 3 The expression “7%” substituted by the Finance Act, 2025. 4 The expression “8%” substituted by the Finance Act, 2025. 5 The expressions “or a statement under sub-section (4) of section 115, omitted though Finance Act, 2020 dated 30th June, 2020 763 Tenth Schedule ________________________________________ (2) The Commissioner, on receipt of a notice under sub-rule (1), shall within thirty days pass an order accepting the contention or making the order under sub-rule(3). (3) Where the withholding agent or the person from whom tax is required to be collected or deducted has notified the Commissioner under sub-rule(1) and the Commissioner has reasonable grounds to believe that the person not appearing in the active taxpayers’ list was required to file return or statement, as the case may be, the Commissioner may, by an order in writing, direct the withholding agent to deduct or collect tax under rule 1: Provided that in case the Commissioner does not pass any order within thirty days or receipt of notice under sub-rule(1), the Commissioner shall be deemed to have accepted the contention under sub-rule (2) and approval shall be treated to have been granted. 3. Provisional assessment. (1) Where for a tax year person’s tax has been collected or deducted in accordance with rule 1 and the person fails to file return of income 1[ ] for that tax year within the due date provided in section 118 or as extended by the Board, the Commissioner shall notwithstanding anything contained in sub-sections (3) and (4) of section 114 2[ ], within sixty days of the due date provided in section 118 or as extended by the Board make a provisional assessment of the taxable income of the person and issue a provisional assessment order specifying the taxable income assessed and tax due thereon. (2) In making the provisional assessment under sub-rule (1), the Commissioner shall impute taxable income on the amount of tax deducted or collected under rule 1 by treating the imputed income as concealed income for the purposes of clause (d) of sub-section (1) of section 111: Provided that the provision of section 111 shall be applicable on unexplained income, asset or expenditure in excess of imputed income treated as concealed income under this rule.” “Explanation.- For the removal of doubt it is clarified that the imputable income so calculated or concealed income so determined shall not absolve the person so assessed, from requirement of filing of wealth statement under sub- section (1) of section 116, the nature and source of amounts subject to deduction or collection of tax under section 111, section of audit under section 177 or 214C or subsequent amendment of assessment as provided in rule 8 and all the provisions of the Ordinance shall apply.” 1 30th The expressions “or statement, as the case may be, omitted though Finance Act, 2020 dated June, 2020 2 The expressions “or sub-section (5) of section 115” omitted through Finance Act, 2020 dated 30th June, 2020 764 Tenth Schedule ________________________________________ 4. Finalization or abatement of provisional assessment.-(1) The provisional assessment under rule 3, shall be treated as the final assessment order after the expiry of forty-five days from the date of service of order of provisional assessment and the provisions of this Ordinance shall apply accordingly. (2) The provisional assessment shall stand abated and shall be taken be assessment finalized under sub-section (1) of section 120 where the returns of income and wealth statement for the relevant tax year and the preceding tax year along with prescribed form, statements or documents are filed by the person within a period of forty-five days of receipt of provisional assessment order. (3) Where returns have been filed before provisional assessment or under sub-rule (2), the tax deducted or collected under rule 1 shall be adjustable against the tax payable in the return filed for the relevant tax year. 5. Where the provisional assessment has been treated as final assessment under sub-rule (1) of rule 4, the Commissioner may within thirty days of the final assessment initiate proceedings for imposition of penalties under section 182 on account of non-furnishing and concealment of income. 6. For the purposes of this Schedule, imputed income means- (a) income for individuals and association of persons which have resulted in the amount of tax given in paragraph (1) of Division I of the First Schedule equal to the tax collected or deducted under rule 1 for not appearing in the active taxpayers’ list; or (b) income for companies which would have resulted in the amount of tax given in Division II of the First Schedule equal to the tax collected or deducted at the higher rate under rule 1 for not appearing in the active taxpayers’ list. 7. Where the withholding agent fails to furnish in the withholding statement complete or accurate particulars of persons not appearing on active taxpayers’ list, the Commissioner shall initiate proceedings under sections 182 and 191 against the withholding agent within thirty days of filing of withholding statement under section 165. 8. Amendment of assessment.-(1) The Commissioner may amend an assessment order where the imputed income is less than the amount on which tax was deducted or collected under rule 1 or on the basis of definite information acquired from an audit or otherwise, the Commissioner is satisfied that- (a) any income chargeable to tax has escaped assessment; or (b) total income has been under-assessed, or assessed at too low a rate, or has been the subject of excessive relief or refund; or 765 Tenth Schedule ________________________________________ (c) any amount under a head of income has been misclassified. (2) Notwithstanding the provisions of sub-rule (1), where a provisional assessment has been treated as final assessment or where in response to the provisional assessment, return has been filed within forty-five days or where assessment has been amended under sub-rule (1) and the assessment order is considered erroneous in so far it is prejudicial to the interest of revenue, the Commissioner may, after making or causing to be made, such enquiries as he deems necessary, amend the assessment order. (3) For the purposes of sub-rule (1), “definite information” shall have the same meaning as defined in sub-section (8) of section 122. 9. Provisions of Ordinance to apply.- The provisions of this Ordinance not specifically dealt with in the aforesaid rules shall apply, mutatis mutandis, in the case of proceedings against the persons not appearing on active taxpayers’ list. 10. The provisions of this Schedule shall not apply on tax collectible or deductible in case of the following sections:- (a) tax deducted under section 149; (b) tax deducted under section 152 other than sub-section 1[(2A)(a),] (2A)(b) and (2A)(c) of section 152; 2[(ba) Tax deducted under clause (5A) of Part II of the Second Schedule read with sub-section (2) of section 152.] 3[(bb) tax deducted under sub-section (2) of section 152 to the extent of clause (5AA) of Part II. (c) tax collected or deducted under section 154; 4[(ca) tax collected or deducted under section 154A;] 5[ ] Omitted (d) 1 30th The expressions “(1), (1AA), (2)” substituted by Finance Act, 2020 dated June, 2020 2 26th Clause (ba) inserted through Tax Laws (Second Amendment) Ordinance 2019, dated December, 2019. 3 30th New sub rule (bb) inserted through Finance Act, 2020 dated June, 2020. 4 New sub-rule (ca) inserted by the Finance Act, 2022. 5 Clauses (d), (f), (g), (h), (j), (m), (r) and (s) omitted by the Finance Act, 2021. The omitted clauses read as follows: (d) tax deducted under section 155; (f) tax deducted under section 231A; (g) tax deducted under section 231AA; (h) tax deducted under section 233AA; (j) tax deducted under section 235A; (m) tax collected under section 236B; (r) tax collected under section 236L; (s) tax collected under section 236P; 766 Tenth Schedule ________________________________________ (e) 1[Omitted] (f) Omitted (g) Omitted 2[(ga) tax deducted under section 231AB;] (h) Omitted 3[(ha) tax collected under section 234 during the period starting from the date of commencement of the Tax Laws (Second Amendment) Ordinance, 2022 and ending on the 30th day of June, 2023 in respect of goods transport and passenger transport vehicle.] (i) tax deducted under section 235; (j) Omitted (k) 4[ ] (l) tax collected under section 236; (m) Omitted (n) 5[ ] (o) 6[ ] (p) Omitted (q) 7[ ] (r) Omitted (s) Omitted (t) Omitted 8[ ] 1 Sub-rule (e), (p) and (t) omitted by the Finance Act, 2022. The omitted sub-rules read as follows: “(e) tax deducted under section 156B; (p) tax deducted under section 236I; (q) tax deducted under section 236Q;” 2 Sub-rule (ga) inserted by the Finance Act, 2023. 3 Clause (ha) inserted by the Tax Laws (Amendment) Act, 2023 (XVI of 2023) dated 20.04.2023. Earlier this clause was inserted through Tax Laws (Second Amendment) Ordinance, 2022 (VI of 2022) dated 23.08.2022. 4 30th Sub-rule (k) omitted through Finance Act, 2020 dated June, 2020 the omitted rule read as follows: (k) tax collected under section 235B;. 5 30th Sub-rule (n) omitted though Finance Act, 2020 dated June, 2020 the omitted rule read as follows: “(n) tax collected under section 236D;” 6 30th Sub-rule (o) omitted though Finance Act, 2020 dated June, 2020 the omitted rule read as follows: “(o) tax collected under section 236F;” 7 30th Sub-rule (q) omitted through Finance Act, 2020 dated June, 2020 the omitted rule read as follows: “(q) tax collected under section 236J;” 8 30th Sub-rules (u),(v),(w) and (x) omitted though Finance Act, 2020 dated June, 2020 the omitted rules read as follows : (u) tax collected under section 236R; (v) tax collected under section 236U; 767 Tenth Schedule ________________________________________ 1[(y) tax collected under section 2[37A on disposal of securities acquired on and from 1st day of July, 2025;] (w) tax collected under section 236V; (x) tax collected under section 236X;” 1 New sub-rule (y) inserted by the Finance Act, 2024. 2 The expression “37A%” substituted by the Finance Act, 2025. 768 Eleventh Schedule___________ __________________________

Effective date: 2001-09-13

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