Withholding Tax Card 2016/2017: advance tax on non-cash banking transactions

fbr

KARACHI: Federal Board of Revenue (FBR) has updated advance tax on banking transactions otherwise than through cash of above Rs50,000 per day made by non-filers during 2016/2017.
Advance tax on banking transactions otherwise than through cash under section 236P of Income Tax Ordinance, 2001.
Sub-Section (1): Every banking company shall collect advance adjustable tax from a non-filer at the time of sale of any instrument, including demand draft, pay order, special deposit receipt, cash deposit receipt, short term deposit receipt, call deposit receipt, rupee traveller‘s cheque or any other instrument of such nature.
Sub-Section (2): Every banking company shall collect advance adjustable tax from a non-filer at the time of transfer of any sum through cheque or clearing, interbank or intra bank transfers through cheques, online transfer, telegraphic transfer, mail transfer, direct debit, payments through internet, payments through mobile phones, account to account funds transfer, third party account to account funds transfers, real time account to account funds transfer, real time third party account to account fund transfer, automated teller machine (ATM) transfers, or any other mode of electronic or paper based funds transfer.
Sub-Section (3): The advance tax under this section shall be collected at the rate specified in Division XXI of Part IV of the First Schedule, where the sum total of payments for all transactions mentioned in sub-section (1) or subsection (2), as the case may be, exceed fifty thousand rupees in a day.
Division XXI of Part IV of the First Schedule
The rate of tax to be collected under section 236P shall be 0.6 percent [presently the reduced rate is 0.4 percent] of the transaction for non-filers.
Provided that the rate specified in this Division [for the period it deems appropriate] shall be 0.3 per cent for the period commencing from the 11th day of July, 2015 and ending on the 30th day of September, 2015 (both days inclusive) or till the date as the Federal Government may, by notification in the official Gazette on recommendation of the Economic Coordination Committee of the Cabinet, extend:
Provided that the Federal Government may, by notification in the official Gazette and on recommendation of the Economic Coordination Committee of the Cabinet, amend the rate specified in this Division.
Explanation.- For removal of doubt, it is clarified that the said fifty thousand rupees shall be aggregate transfers from all the bank accounts in a single day.
Sub-Section (4): Advance tax under this section shall not be collected in the case of payments made for Federal, Provincial or local Government taxes.

(Visited 2,237 times, 1 visits today)

Leave a Reply

Your email address will not be published. Required fields are marked *