Withholding · Section 231AB · Tax Year 2026-2027
Cash Withdrawal Tax Calculator
See the advance tax deducted on large cash withdrawals — 0% for filers, 0.8% for non-filers.
Step by step
How cash withdrawal tax is worked out
Enter your withdrawal amount
The total cash withdrawn in a day, across accounts at that bank.
Choose your filer status
Filers pay nothing; non-filers pay 0.8%.
See the tax withheld
Deducted automatically by your bank at the time of withdrawal.
Check your net cash
What you actually receive in hand.
Good to know
Cash withdrawal tax essentials
Threshold-based
Only withdrawals above the notified daily threshold attract this tax — small everyday withdrawals are unaffected.
Adjustable, not final
You can claim this as a tax credit against your annual liability when filing your return.
The simplest filer incentive
This is one of the clearest examples of the cost of not being an active filer.
Reading the result
The threshold is per day, across the account
The limit is not per transaction. Withdrawals from the same account on the same day are looked at together, so splitting one large withdrawal into several smaller ones over an afternoon does not avoid the deduction. Banks aggregate the day.
Spreading genuinely across separate days is different in substance, but for a business making regular large cash withdrawals it is rarely practical.
Filers are outside this entirely
This is one of the few withholding provisions where being on the Active Taxpayer List does not reduce the rate but removes the charge. For anyone withdrawing cash in volume — a trader paying suppliers, a contractor paying wages — the annual cost of being outside the ATL adds up fast.
Cheques and transfers are not withdrawals
The provision targets cash leaving the banking system. Paying a supplier by transfer, cheque or digital payment does not trigger it, and moving routine payments off cash removes the charge and leaves a documentary trail that helps at filing time.
Where this stops
This works out the deduction on the amounts you enter. It does not track your daily aggregate across a month, and it does not cover the separate provisions that apply to some banking transactions other than cash withdrawal.
FAQs
Cash withdrawal tax FAQs
Who pays cash withdrawal tax?
Under Section 231AB, banks deduct advance tax on cash withdrawals exceeding the notified threshold in a day — but only from non-filers. Filers (on the Active Taxpayers List) are exempt at 0%.
What is the withdrawal threshold?
The tax typically applies once your single-day cash withdrawal from all your accounts at one bank crosses a notified threshold (historically around Rs 50,000/day) — small withdrawals below that are not taxed at all.
Is this tax adjustable?
Yes, cash withdrawal tax under Section 231AB is an adjustable advance tax — it can be claimed as a tax credit against your annual income tax liability when you file your return.
How do I avoid this tax entirely?
Simply becoming an active filer (appearing on the FBR Active Taxpayers List) reduces the rate on this transaction to 0%.
Related tools
See the full filer vs non-filer cost
Cash withdrawal is just one of several transactions where filers pay less.
Open Filer vs Non-Filer Calculator