Cash Withdrawal Tax Calculator Pakistan 2026-27

What Is Section 231AB Cash Withdrawal Tax?

Section 231AB of the Income Tax Ordinance deals with advance tax on cash withdrawals from banks by persons whose names are not appearing on the Active Taxpayers List.

For the current calculator period, the applicable rate is 0.8% where aggregate cash withdrawals in a single day exceed Rs. 50,000.

How the Cash Withdrawal Tax Calculator Works

Enter the aggregate amount of cash you intend to withdraw during one day and select your ATL status. The calculator then determines whether Section 231AB applies and estimates the tax deduction.

What If You Withdraw Rs. 50,000 or Less?

The Section 231AB threshold relates to aggregate cash withdrawals in a single day exceeding Rs. 50,000. If the aggregate amount does not exceed this threshold, this calculator returns zero tax under Section 231AB.

What If You Make Multiple Withdrawals on the Same Day?

The Rs. 50,000 test is based on aggregate cash withdrawals in a single day. Therefore, splitting cash into several withdrawals does not mean that each transaction receives a separate Rs. 50,000 threshold.

For example, if a non-ATL person withdraws Rs. 30,000 and later withdraws another Rs. 30,000 on the same day, the aggregate daily withdrawal becomes Rs. 60,000.

Does Section 231AB Apply to Active Taxpayers?

Section 231AB specifically addresses cash withdrawals by a person whose name is not appearing on the Active Taxpayers List. Therefore, this calculator returns zero Section 231AB tax when Active Taxpayer (ATL) is selected.

Is Cash Withdrawal Tax Adjustable?

Section 231AB describes the deduction as advance adjustable tax. The eventual tax treatment depends on the taxpayer's circumstances and applicable provisions of the Income Tax Ordinance.

Frequently Asked Questions

What is the cash withdrawal tax rate in Pakistan?

Under Section 231AB, the current rate used by this calculator is 0.8% for a person not appearing on ATL where the applicable daily cash-withdrawal threshold is exceeded.

What is the daily cash withdrawal threshold?

The relevant threshold is Rs. 50,000 in aggregate cash withdrawals during a single day.

Is tax charged only on the amount above Rs. 50,000?

No. The threshold determines whether Section 231AB applies. Once the applicable aggregate daily withdrawal exceeds Rs. 50,000, the rate applies to the cash withdrawal amount rather than only the portion above Rs. 50,000.

Does an ATL taxpayer pay Section 231AB cash withdrawal tax?

Section 231AB applies to a person whose name is not appearing on the Active Taxpayers List. The calculator therefore shows zero tax when ATL status is selected.

Can this tax be adjusted in the Income Tax Return?

Section 231AB characterizes the deduction as advance adjustable tax. Actual adjustment should be made according to the taxpayer's return, records and applicable tax provisions.