Income tax
Profit on debt withholding tax in Pakistan: section 151
Section 151 covers withholding tax on 'profit on debt' - the interest or profit earned on deposits, savings certificates, bonds, and similar instruments.
Key rates
- National Savings Scheme or Post Office savings account yield: 15% for Active Filers (final, or minimum if the amount exceeds Rs. 5 million), 30% for Non-Filers
- Profit on an account or deposit maintained with a banking company or financial institution: 20% / 40%
- Profit on securities issued by Federal, Provincial or local Government: 15% / 30% for individuals; 20% / 40% for companies or AOPs
- Profit on bonds, certificates, debentures or similar instruments issued by a banking company, financial institution, company, or finance society: 15% / 30%
- All other cases not separately specified: 15% / 30%
Sukuk returns (section 151(1A))
| Company sukuk holders | 25% / 50%, final tax |
|---|---|
| Individuals and AOPs where the return exceeds Rs. 1 million | 12.5% / 25% |
| Individuals and AOPs where the return is Rs. 1 million or less | 10% / 20% |
What didn't change
Unlike several other withholding sections, the profit-on-debt rates under Section 151 remain unchanged under Finance Act 2026. If you're comparing this year's tax planning to last year's, this section is one you don't need to re-check.
Our withholding calculator includes this section for quick estimates. For a detailed review of your specific savings or investment income, contact our team.