Cash Withdrawal Tax Calculator 2026-27
See what the bank deducts when a non-filer withdraws cash: 0.8% once the day's withdrawals pass Rs 50,000, what filers pay (nothing), how much a month of withdrawals costs, and how splitting withdrawals across days changes it.
How this is calculated
Section 231AB of the Income Tax Ordinance requires every bank to deduct advance adjustable tax from a person not appearing on the Active Taxpayer List when the cash withdrawn in a single day exceeds Rs 50,000. The rate was 0.6% until 30 June 2025 and is 0.8% from 1 July 2025 (Finance Act 2025), unchanged for 2026-27.
- The rate applies to the amount withdrawn once the day's total passes the threshold.
- Filers pay nothing.
- The deduction is credited against the year's tax if the person files a return.
The calculator multiplies one day's withdrawal by the rate and scales it by the number of such days you enter, and shows how many days it would take to withdraw the same cash tax-free.
Frequently asked questions
- Is the tax on the whole amount or only the part above Rs 50,000?
- Banks apply it to the full amount withdrawn once the day's total crosses Rs 50,000, which is how the section is drafted. Rs 50,000 exactly is not taxed; Rs 50,001 is taxed in full.
- Do filers pay cash withdrawal tax?
- No. Being on the Active Taxpayer List removes the deduction entirely. Late filers pay it until their name appears on the list.
- Does it apply to ATM withdrawals?
- Yes, ATM, counter and cheque withdrawals from your account count together for the day.
- Can I get it back?
- Yes, if you file a return for that tax year; it is an advance tax, not a final one. Ask the bank for a tax deduction certificate or check FBR's portal.
Sources
Version 1.0.0 · reviewed 15 Sept 2026. Rates change with the Federal Budget and regulator notifications; we update this tool when they do. Confirm with the primary source before making financial decisions.