Withholding tax rates for filers and non-filers
Rates for transactions from 1 July 2026, set by the Finance Act 2026. If you are not on the Active Taxpayers List, you pay the non-filer rate.
| Transaction | Filer | Non-filer |
|---|---|---|
| Cash withdrawals above Rs. 50,000 a dayCash withdrawal, on the whole amount when total withdrawals from all accounts in one day exceed Rs. 50,000 (s.231AB) | 0% | 0.8% |
| Buying propertyProperty purchase advance tax (s.236K). Non-filer rate by fair market value: up to Rs. 50M 10.5%, Rs. 50–100M 14.5%, above Rs. 100M 18.5% | 1.25% | 10.5% to 18.5% |
| Selling propertyProperty sale advance tax (s.236C), on the sale price | 2.75% | 11.5% |
| Vehicle registration, up to 1000ccNew vehicle registration, up to 1000cc (s.231B). Filer rate by engine size: up to 850cc 0.5%, 851–1000cc 1% | 0.5% to 1% of value | 1.5% to 3% of value |
| Vehicle registration, 1001cc to 2000ccNew vehicle registration, 1001–2000cc (s.231B). Filer rate by engine size: 1001–1300cc 1.5%, 1301–1600cc 2%, 1601–1800cc 3%, 1801–2000cc 5% | 1.5% to 5% of value | 4.5% to 15% of value |
| Vehicle registration, above 2000ccNew vehicle registration, above 2000cc (s.231B). Filer rate by engine size: 2001–2500cc 7%, 2501–3000cc 9%, above 3000cc 12% | 7% to 12% of value | 21% to 36% of value |
| DividendsDividend income (s.150). General rate; mutual funds, REITs and IPPs differ | 15% | 30% |
| Capital gains on listed sharesCapital gains on listed securities acquired from 1 Jul 2024 (s.37A). Non-filers: income tax slab rate (minimum 15%), increased by 100% from 1 Jul 2026 | 15% | Slab rate ×2 (min 30%) |
| Home electricity bills above Rs. 25,000 a monthDomestic electricity bill above Rs. 25,000 per month (s.235) | Nil | 7.5% of bill |
Late filers pay non-filer rates until they appear on the ATL. After filing late and paying the Rs. 25,000 ATL surcharge (or giving a 6-month no-property-purchase undertaking), filer rates apply. Non-residents holding a NICOP or POC are not charged non-filer rates on buying or selling property. This table is a summary; your consultant confirms the rate for your transaction.
Questions about withholding tax
- What is withholding tax?
- Withholding tax is deducted at the time of a transaction by whoever makes the payment or registers it, such as a bank, property registrar or vehicle registration office. The rate depends on whether you are on the Active Taxpayers List.
- Is there still a separate late filer rate?
- No. From 1 July 2026 the separate late filer rates were removed. Late filers pay non-filer rates until they appear on the ATL. After filing late and paying the Rs. 25,000 ATL surcharge (or giving a 6-month no-property-purchase undertaking), filer rates apply.
- How do I start paying filer rates?
- File your income tax return. If you file by 30 September you are included in the Active Taxpayers List. If you file after the deadline, you are added to the Active Taxpayers List once you pay the ATL surcharge of Rs. 25,000 as an individual. Instead of paying, an individual can give an undertaking not to buy property for six months.
- Which year do these rates apply to?
- They are the rates in force for transactions from 1 July 2026 under the Finance Act 2026. Rates can change with each federal budget in June, and we update this table when they do.
Get on the Active Taxpayers List
We file your income tax return and wealth statement so you pay filer rates. Rs. 5,999 a year, including any years you missed.
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