s. 155

Rent of immoveable property

Procedure

(1) Every prescribed person making a payment in full or part (including a payment by way of advance) to any person on account of rent of immovable property (including rent of furniture and fixtures, and amounts for services relating to such property) shall deduct tax from the gross amount of rent paid at the rate specified in Division V of Part III of the First Schedule. Explanation.- gross amount of rent includes the amount referred to in sub- section (1) or (3) of section 16, if any. Explanation.— For removal of doubt, it is clarified that the sub section (1) shall apply when a payment is made on account of rent of immoveable property irrespective of head of income
(3) In this section, prescribed person means –
(i) the Federal Government;
(ii) a Provincial Government;
(iii) Local Government ;
(iv) a company;
(v) a non-profit organization or a charitable institution ;
(vi) a diplomatic mission of a foreign state;
(via) a private educational institution, a boutique, a beauty parlour, a hospital, a clinic or a maternity home;
(vib) individuals or association of persons paying gross rent of rupees one and a half million and above in a year; or (vii) any other person notified by the Board for the purpose of this section.

Amendment history (14)

The words “income from” substituted by the Finance Act, 2021.
Inserted by the Finance Act, 2006.
Added by the Finance Act, 2021.
Sub-section (2) omitted by the Finance Act, 2010. The omitted sub-section (2)
Sub-section (3) substituted by the Finance Act, 2006. The substituted sub-section (3)
The words “local authority” substituted by the Finance Act, 2008.
Inserted by the Finance Act, 2013.
The word “or” omitted by the Finance Act, 2013.
The words “Central Board of Revenue” substituted by the Finance Act, 2007.
Inserted by the Finance Act, 2002.
Inserted by the Finance Act, 2003.
Sub-section (3) substituted by the Finance Act, 2002. The substituted sub-section (3)
The words “deducted” substituted by the Finance Act, 2012.
Inserted by the Finance Act, 2014.

Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.

Source FBR PDF page 339

Unofficial reference, compiled from the FBR’s consolidated Income Tax Ordinance 2001 (amended up to 30 June 2026). Provided for general information only — not an official FBR publication and not legal or tax advice. Always verify against the official FBR text before relying on it for filing or any decision.