Cash Withdrawal Tax Calculator Pakistan
In Pakistan, a bank charges a person not on the Active Taxpayers List 0.8% advance tax on cash withdrawals under section 231AB — but only once that day's total withdrawals exceed PKR 50,000, and then on the whole amount, not just the excess. Filers pay nothing. Enter a daily withdrawal to see the exact tax.
Ek din mein 50,000 se zyada cash nikaala? Non-filer par 0.8% tax poore amount par lagta hai — filer par kuch nahi.
← Part of Tax Calculators Pakistan
Applies to
Non-filers (not on ATL)
Daily threshold
PKR 50,000 (aggregate)
Rate & section
0.8% · s.231AB
Last verified
28 Aug 2026 · in force since 1 Jul 2025
Your total (aggregate) cash withdrawn from the bank in a single day, across all withdrawals.
Section 231AB applies only to people not on the FBR Active Taxpayers List. Filers are outside the charge, so their cash withdrawal tax is zero.
Cash withdrawal tax
Your inputs are calculated in your browser and are not stored by CalcuPK.
Rule triggered — the day's withdrawals exceed PKR 50,000.
As a non-filer, the 0.8% is charged on the whole PKR 100,000 — not only on the part above PKR 50,000.
| Item | Amount |
|---|---|
| Cash withdrawn (per day) | PKR 100,000 |
| Threshold (s.231AB) | PKR 50,000 |
| Taxable base | PKR 100,000 |
| Rate applied (non-filer) | 0.80% |
| Advance tax | PKR 800 |
| Net cash received | PKR 99,200 |
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Formula & how it works
Section 231AB tests one day's aggregate cash withdrawals, and then applies as a cliff:
- If the day's total is at or below PKR 50,000 → no tax.
- If it exceeds PKR 50,000 → tax = whole amount × 0.8% (non-filer); filers are exempt.
- Net cash = withdrawal − tax; the tax is your economic cost of taking that cash out.
Because it is charged on the whole amount once the threshold is crossed, the tax jumps from PKR 0 at PKR 50,000 to PKR 400 at PKR 50,001 — a genuine cliff, not a gradual band.
Example calculations
Every figure below comes straight from the calculator engine above, for a non-filer (the only person the charge reaches). Notice the cliff at the threshold:
| Daily withdrawal | Over PKR 50,000? | Advance tax | Net cash | Effective rate |
|---|---|---|---|---|
| PKR 49,999 | No | PKR 0 | PKR 49,999 | 0.000% |
| PKR 50,000 | No | PKR 0 | PKR 50,000 | 0.000% |
| PKR 50,001 | Yes | PKR 400 | PKR 49,601 | 0.800% |
| PKR 50,500 | Yes | PKR 404 | PKR 50,096 | 0.800% |
| PKR 100,000 | Yes | PKR 800 | PKR 99,200 | 0.800% |
| PKR 200,000 | Yes | PKR 1,600 | PKR 198,400 | 0.800% |
PKR 50,000 is tax-free; PKR 50,001 is taxed on the full amount. That is the whole point of section 231AB.
Cash withdrawal tax rule
When you withdraw cash from a bank in Pakistan, the bank may deduct advance income tax under section 231AB of the Income Tax Ordinance 2001. The rate is 0.8% and it applies only to persons not on the Active Taxpayers List (non-filers). It is triggered when your total cash withdrawn in a single day exceeds PKR 50,000, and once triggered it is charged on the whole amount withdrawn that day.
Who pays it?
Only non-filers. If you are on the FBR Active Taxpayers List, section 231AB does not apply to you at all, so no tax is deducted on your cash withdrawals regardless of the amount. This is one of the most immediate, everyday advantages of filing your return — use the filer vs non-filer calculator to see your total annual saving, or read how to become a filer.
What happens at PKR 50,000?
There are three cases people confuse, so it is worth being precise:
- Exactly at the threshold (PKR 50,000): no tax. The charge applies only when the day's aggregate exceeds PKR 50,000.
- Exceeding the threshold (PKR 50,001+): the 0.8% is charged on the entire amount, not just the part above PKR 50,000. So PKR 50,001 is taxed on PKR 50,001.
- Aggregate daily withdrawal: the threshold is tested on your total cash for the day across all withdrawals, not per transaction. Several smaller withdrawals adding up to more than PKR 50,000 still trigger the charge.
Worked examples
The table under “Example calculations” above is generated directly from the same engine that powers the calculator, so the numbers here and in the tool can never drift apart. A non-filer withdrawing PKR 50,500 pays PKR 404; withdrawing PKR 100,000 pays PKR 800.
Section 231AB
Section 231AB was inserted to bring cash withdrawals by non-filers into the advance tax net. The Finance Act 2025 set the rate at 0.8% (up from 0.6%), effective 1 July 2025, per the FBR Withholding Tax Rate Card for Tax Year 2026 and FBR Circular No. 01 of 2025-26. The deduction is adjustable advance tax, not a final tax. Banks are the withholding agents and remit it to the FBR.
Filer / ATL status
“Filer” here means a person appearing on the FBR Active Taxpayers List (ATL), which is updated from filed income tax returns. Being on the ATL removes the section 231AB charge on cash withdrawals entirely. If you are unsure of your status, check the ATL on the FBR portal before relying on this estimate.
Official FBR source
Rate, threshold and treatment are read from the FBR Withholding Tax Rate Card (Tax Year 2026, Finance Act 2025) and FBR Circular No. 01 of 2025-26, section 231AB. Last verified 28 August 2026. Rates change with each federal budget — confirm the current figure on the FBR rate card before relying on it for a large withdrawal.