How much tax is deducted on bank profit in Pakistan?

Under Section 151, banks deduct 20% withholding tax on profit paid to filers on savings accounts, term deposits, and certificates of deposit. Non-filers are charged 40% WHT on bank profit. This tax is adjustable against your annual income tax liability when you file your return.

Can I get a refund on bank profit tax in Pakistan?

Yes, if your total annual income is below the taxable threshold or if WHT on bank profit exceeds your actual tax liability, you can claim a refund by filing your income tax return on FBR IRIS. Once approved, the refund is credited to your registered bank account. FBR does not publish a guaranteed processing timeline, and in practice it can vary considerably.

Is profit on Islamic banking also taxable in Pakistan?

Yes, profit (or 'murabaha return') on Islamic banking savings accounts and term deposits is also subject to the same 20% WHT for filers and 40% for non-filers under Section 151. The tax treatment is identical to conventional banking profit for FBR purposes.

What is the tax on prize bonds and savings certificates in Pakistan?

Prize bond winnings are taxed at 15% for filers and 30% for non-filers as a final tax under Section 156 — this cannot be claimed back. National Savings certificates (Regular Income, Defence Savings, Special Savings) carry the same 15% filer / 30% non-filer withholding tax, confirmed directly on CDNS's own product pages. The Behbood Savings Certificate for widows and senior citizens is exempt from withholding tax entirely.

Bank Profit Tax Pakistan 2026-27 Guide

Pakistan mein saving account, term deposit, ya kisi bhi bank account par jo profit (interest) milta hai, us par FBR tax lagta hai. Ye tax bank khud withhold kar leta hai — matlab aap ke account se automatic kat jata hai. Lekin bohat se log nahi jante ke filer hone par ye tax aadha ho jata hai. Is guide mein hum bank profit tax Pakistan 2026-27 ka poora hisaab batayenge — rates, deduction ka tariqa, aur refund kaise lein.

1. Bank Profit Tax Kya Hota Hai?

Jab aap ke bank account mein profit credit hota hai — chahe wo saving account ho, term deposit ho, ya National Savings ka certificate — bank us profit ka ek hissa FBR ko bheej deta hai. Is process ko Withholding Tax on Bank Profit kehte hain. Aap ko alag se kuch nahi karna hota — ye automatic process hai.

Important: Bank profit tax ek advance tax hai — agar aap filer hain toh ye amount aap ki annual return mein adjust ho sakta hai aur refund bhi mil sakta hai.

2. Bank Profit Tax Rates 2026-27 — Filer vs Non-Filer

Filer aur non-filer ka faraq yahan sab se zyada nazar aata hai. Dekho kitna faraq hai:

Account Type	Filer Rate	Non-Filer Rate
Saving Account	20%	40%
Term Deposit (Fixed)	20%	40%
Islamic Banking (Murabaha Profit)	20%	40%
Current Account (profit-bearing)	20%	40%
Prize Bond Winnings (§156)	15%	30%
National Savings Certificate (RIC, DSC, SSC)	15%	30%
Behbood Savings Certificate	Exempt — no withholding tax

Section 151 ke teen alag case hain — isi liye rates mukhtalif hain. Bank ya financial institution ke account/deposit par profit 20% filer / 40% non-filerpar lagta hai. Government securities jo kisi company ya AOP ko di jayein, wo bhi 20%/40%. Baaki tamam cases 15% / 30% par aate hain.

National Savings (CDNS) ke liye confirmed rates: Humne 18 August 2026 ko CDNS ki official product pages (savings.gov.pk) directly check ki — Regular Income Certificate, Defence Savings Certificate, aur Special Savings Certificate teeno par CDNS khud 15% filer / 30% non-filer likhta hai ("other cases" wali category, bank deposit wali 20%/40% nahi). Behbood Savings Certificate par CDNS khud kehta hai ke koi withholding tax nahi — na filer na non-filer se kata jata hai.

Source: FBR Withholding Income Tax Rate Card (Finance Act 2026), Section 151, aur CDNS (Central Directorate of National Savings) ki individual product pages — Defence Savings Certificate, Regular Income Certificate, Special Savings Certificate, aur Behbood Savings Certificate — sab savings.gov.pk par verify ki gayi.

3. Real Example — Kitna Faraq Parta Hai?

Maan lijiye aap ke saving account mein Rs. 10 lakh hain aur bank 15% annual profit deta hai:

Calculation	Filer	Non-Filer
Saalana Profit (15%)	Rs. 1,50,000	Rs. 1,50,000
Tax Rate	20%	40%
Tax Deducted	Rs. 22,500	Rs. 45,000
Aap Ki Net Bachat (Filer banne se)	Rs. 22,500 per saal!

Sirf ek account par Rs. 22,500 saalana bachat. Agar multiple accounts hain toh ye saving aur bhi zyada hogi. Filer abhi banein — bilkul free hai.

4. National Savings Certificates — Bahbood, RIC, DSC, Special Savings

Pakistan mein bohat se log National Savings ke certificates mein invest karte hain. Humne 18 August 2026 ko CDNS ki apni official product pages (savings.gov.pk) directly check ki — yeh hain confirmed rates:

Certificate Type	Filer Tax	Non-Filer Tax
Behbood Savings Certificate (BSC)	Exempt — no withholding tax at all
Regular Income Certificate (RIC)	15%	30%
Defence Savings Certificate (DSC)	15%	30%
Special Savings Certificate (SSC)	15%	30%

RIC, DSC, aur SSC — teeno par CDNS khud "Rate of Withholding Tax shall be 15% of the yield/profit" (filer) aur 30% (non-filer) likhta hai, "irrespective of date of investment and amount/profit." BSC (widows aur 60+ senior citizens ke liye) par CDNS khud confirm karta hai ke koi withholding tax deduct nahi hota. Zakat treatment alag hai — RIC aur BSC Zakat se exempt hain, DSC aur SSC par Zakat rules ke mutabiq kata jata hai. Source: savings.gov.pk (Defence Savings Certificates, Regular Income Certificates, Special Savings Certificates, aur Behbood Savings Certificates product pages), verified 18 August 2026.

5. Saving Account Tax Kab Aur Kaise Kata Jata Hai?

Yeh process fully automatic hai — aapko kuch karna nahi hota:

Bank aapke account mein profit credit karta hai (monthly ya quarterly)
Profit credit hone ke waqt bank automatically withholding tax kat leta hai
Katty hue tax ki raqam FBR ko bhej di jati hai aapki CNIC pe
Aapko bank statement mein "WHT" ya "Withholding Tax" ka entry nazar aata hai
Saal ke aakhir mein yeh amount aapki FBR profile mein show hota hai

Important: Bank aapki filer status CNIC ke zariye FBR Active Taxpayers List (ATL) se check karta hai. Agar aap ATL pe hain — kam rate katega. Agar nahi — non-filer rate katega. Isliye filer hona zaroori hai.

6. Bank Profit Tax Return Mein Adjust Kaise Karein — Refund Step by Step

Filer hone ka ek aur bada fayda hai — bank ka kata hua tax aap ki annual return mein adjust ya refund ho sakta hai:

Bank se WHT certificate hasil karein: Apni bank branch se saalana profit aur withheld tax ka certificate mangwayein.
FBR IRIS pe login karein: iris.fbr.gov.pk pe apni ID se login karein.
Return mein Profit on Debt enter karein: Return file karte waqt Profit on Debt section mein ye amount enter karein.
WHT credit claim karein: Withheld tax automatically adjust ho jayega final tax liability se. Agar aap ki total tax liability kam hai toh difference refund ho sakta hai.
Refund request submit karein: Agar extra kata hai, IRIS pe refund application submit karein — approve hone ke baad registered bank account mein aa jata hai. FBR koi guaranteed processing timeline publish nahi karta, is liye waqt kaafi vary kar sakta hai.
Wealth statement update karein: Bank balance aur profit ko Form 116 mein zaroor declare karein.

Yaad rakhein: Bank profit declare na karna FBR audit ka sabab ban sakta hai. Apne tamam accounts ka profit honestly declare karein. Non-filers ke liye 40% final tax hai — refund nahi milta.

7. Zakat Aur Bank Profit Tax — Kya Faraq Hai?

Bohat se log Zakat aur withholding tax ko confuse karte hain. Ye dono alag hain:

Cheez	Zakat	Withholding Tax
Kaun leta hai?	State Bank of Pakistan	FBR (Federal Board of Revenue)
Rate	2.5% (once a year)	20% – 40% on profit only
Kab kata hai?	1st Ramzan (on Nisab amount)	Har baar profit credit hone par
Exemption	CZ-50 form submit kar ke	Filer ban kar rate kam karein

8. FAQ — Bank Profit Tax Pakistan

Q1. Kya current account par bhi tax lagta hai?

Regular current accounts par profit nahi hota isliye tax nahi lagta. Lekin agar aap ka current account profit-bearing hai toh us par bhi withholding tax lagega.

Q2. Agar Rs. 500,000 se kam balance ho toh bhi tax kata hai?

Haan, koi minimum limit nahi hai. Chahe Rs. 1 bhi profit ho, bank withholding tax katega. Lekin bahut chhoti raqam par practically ye na ke barabar hota hai.

Q3. Joint account par tax kaun deta hai?

Joint account mein jo primary account holder (first name) hota hai, tax us ke CNIC par deduct hota hai. Isliye primary holder ka filer hona zaroori hai.

Q4. Islamic banking (profit) par bhi same tax lagta hai?

Haan. FBR ke qanoon mein Islamic banking ka profit aur conventional bank ka interest dono par same withholding tax rates apply hote hain — filers ke liye 20% aur non-filers ke liye 40%.

Q5. Bank ne galat rate par tax kaat liya — kya karein?

Agar aap filer hain lekin bank ne non-filer rate apply kar diya (jo kabhi kabhi ATL update delay ki wajah se hota hai), toh return file karte waqt difference claim kar sakte hain. Bank se WHT certificate zaroor lein proof ke liye.

Source: Section 151 (bank profit) and Section 156 (prize bonds) rates based on the FBR Withholding Income Tax Rate Card and Finance Act. These rates are unchanged for tax year 2026-27 (TY2027). National Savings certificate rates (RIC, DSC, SSC, BSC) were verified directly against CDNS's own product pages on savings.gov.pk on 18 August 2026 — see section 4 above. Written by Bilal Hassan — see how we verify rates. Last verified: August 2026.

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Bank Profit Tax Pakistan 2026-27 — Saving Account Par Kitna Tax Kata Hai?