Section 155 Income from Property
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. 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.
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 (in case of individuals and AOPs) from the gross amount of rent paid at the following rates:
| S.No. | Gross amount of rent | Rate of tax |
| (1) | (2) | (3) |
| 1. | Where the gross amount of rent does not exceed Rs.200,000. | Nil |
| 2. | Where the gross amount of rent exceeds Rs.200,000 but does not exceed Rs.600,000. | 5 per cent of the gross amount exceeding Rs.200,000. |
| 3. | Where the gross amount of rent exceeds Rs.600,000 but does not exceed Rs.1,000,000. | Rs.20,000 plus 10 per cent of the gross amount exceeding Rs.600,000. |
| 4. | Where the gross amount of rent exceeds Rs.1,000,000 but does not exceed Rs.2,000,000. | Rs.60,000 plus 15 per cent of the gross amount exceeding Rs.1,000,000. |
| 5. | Where the gross amount of rent exceeds Rs.2,000,000. | Rs.210,000 plus 20 per cent of the gross amount exceeding Rs.2,000,000 |
Rate for companies
15% of the gross amount (for filers)
17.5% of the gross amount (for non-filers)
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