Ro Maryam Ro
Minister (2k+ posts)
(Admin Plz don't merge this thread, everyone should know the truth that this tax is non-adjustable)
Some Paid employees of PML-N are claiming and lying that 0.6% is adjustable. They are lying it is non adjustable. It is same like Tax on Cash Withdraw (existing law). Was that tax ever adjustable.
Secondly this tax is on both people Tax Filers (0.3%) and Non Tax Filers (0.6%)
Below is the full detail of this law.
Through Finance Act, 2015, Federal Government has introduced new section (236P) which relates to collection of 0.6% advance tax on Non cash DEBIT transactions on Non Filers only. The details of the newly introduced law and amendments in relevant existing law is as follows:
Some Paid employees of PML-N are claiming and lying that 0.6% is adjustable. They are lying it is non adjustable. It is same like Tax on Cash Withdraw (existing law). Was that tax ever adjustable.
Secondly this tax is on both people Tax Filers (0.3%) and Non Tax Filers (0.6%)
Below is the full detail of this law.
Through Finance Act, 2015, Federal Government has introduced new section (236P) which relates to collection of 0.6% advance tax on Non cash DEBIT transactions on Non Filers only. The details of the newly introduced law and amendments in relevant existing law is as follows:
- Effect date of the amendments detailed below is effective from July 1, 2015. Collection of below withholding/advance tax will be made through IT system and the branches do not have to do manual entries.
- The withholding tax on cash withdrawal exceeding Rs. 50,000 a day will be 0.3% for Filers and 0.6% for Non Filers.
- Newly inserted advance tax @ 0.6% on withdrawal, exceeding Rs. 50,000 a day, other than cash is applicable on DEBITS ONLY and ONLY ON NON FILERS. i.e.effective July 1, 2015, Non Filer will be subject to 0.6% withholding tax on every kind of withdrawal (in aggregate exceeding Rs. 50,000 a day) from his account either through cash OR through transfer cheque, clearing cheque, payorder, demand draft, transfer of funds to his own account or to another persons account, on-line transfers, transfer through internet/ ATM/ mobile phones, direct debits etc.
- If customer has two accounts, the limit of Rs. 50,000 will be monitored separately.
- Bank will collect 0.6% advance tax from Non Filers on sale of any instrument including COIs and other investment instruments, pay orders, demand drafts, CDRs,SDR,STDR, Rupee Travellers cheques and any other instrument of such nature. This tax will be applicable on sale of these instruments either through cash or debiting the customers account.
- In case the COI or other investment instrument is issued to Non Filer, 0.6% tax will be collected at the time of debiting his account. However, no such type of tax will be levied at the time of encasement of COI when COI account is debited and his saving/current account is credited.
- No tax will be deducted where debits are made for payment of Govt. Taxes. For instance, if profit of Rs.600,000 is credited to an account and withholding tax of Rs. 60,000 is debited on this profit. No tax @ 0.6% will be deducted on debit of Rs. 60,000. Advance tax will also NOT collected in case of Pakistan Real-time Interbank Settlement Mechanism (PRISM) Transactions.
- Per day limit of Rs. 50,000 will be monitored separately for debits relating to cash withdrawal (existing law) and other than cash transactions (Newly introduced law). For example if a Non Filer withdraw cash Rs. 30,000 and on the same day also make payment of Rs. 25,000 through cheque, no tax will be deducted. However, in case both transactions took place through cheque tax @ 0.6% will be collected on Rs. 55,000.
- Withholding tax on Profit payments on Saving accounts and Time deposits for Filer will be 10% and for Non Filers will be 17.5%. The withholding rate of 17.5% on Non Filers will only be applicable where profit on single payments exceeds Rs. 500,000. For example if six(6) COIs are matured and profit of Rs. 100,000 is paid on each COI, withholding tax @ 10% will be deducted. However, if it is one and single COI and profit of Rs. 600,000 is paid through one transaction, withholding tax @ 17.5% will be deducted.
- In case of joint account holders, if any one of the account holder is Filer, the status of that joint account will be considered as Filer irrespective of the fact that Filer is principal account holder or joint account holder. Filer means a person whose name is appearing in FBRs Active Taxpayers List or he has got Tax Payers Card issued by FBR.
- Cash payments against home remittances are exempt from withholding tax. However, if the home remittance is credited to an account, the withdrawal from that account will attract provision of 0.6% advance tax.
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