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Author: Mrs. Anjum Shahnawaz

  • Rupee gains 12 paisas on sufficient dollar supply

    Rupee gains 12 paisas on sufficient dollar supply

    KARACHI: The Pak Rupee gained 12 paisas against dollar on Thursday owing to sufficient supply of the greenback in the market.

    The rupee ended Rs154.66 to the dollar from previous day’s closing of Rs154.78 in interbank foreign exchange market.

    Currency dealers said that the market witnessed sufficient supply of dollar during the day. The inflows helped the rupee to gain the value against the foreign currency.

    The foreign currency market was initiated in the range of Rs154.76 and Rs154.79. The market recorded day high of Rs154.77 and low of Rs154.66 and closed at Rs154.66.

    The exchange rate in open market also witnessed appreciation in local currency.

    The buying and selling of the dollar was recorded at Rs154.60/Rs154.90 from previous day’s closing of Rs154.70/Rs155.00 in cash ready market.

  • Sales tax on mobile phones reduced by 85% to promote digital economy: FBR

    Sales tax on mobile phones reduced by 85% to promote digital economy: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) has reduced sales tax on imported mobile phones by 85 percent in order to promote digital economy in the country.

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  • Return filing for tax year 2019 must for salary income above Rs400,000

    Return filing for tax year 2019 must for salary income above Rs400,000

    KARACHI: Persons having salary income above Rs400,000 are required to file income tax returns for tax year 2019 as slabs revised through Finance Act, 2019 will be applicable for tax year 2020, officials said on Thursday.

    The officials said that there were misconceptions about the filing of income tax returns for tax year 2019 by the salary persons due to changes brought in Income Tax Ordinance, 2001 through Finance Act, 2019.

    As per the amendment the minimum threshold for filing income tax returns for tax year 2020 has been increased to Rs600,000 for which the return filing will be due in September 2020. However, the salary persons are required to file income tax returns on the basis of minimum threshold of Rs400,000.

    The date for filing of income tax return has been extended to January 31, 2020. The actual date for filing of income tax returns for tax year 2019 was September 30, 2019. However, since then the FBR extended the date for five times.

    The tax officials said that the persons required to file income tax returns before the applicable of new tax rates should discharge their liabilities in order to avoid penal action.

    The tax rates for salary persons under Income Tax Ordinance, 2001 prior to amendments through Finance Act, 2019 are as follow:

    Where the income of an individual chargeable under the head “salary” exceeds fifty per cent of his taxable income, the rates of tax to be applied shall be as set out in the following table, namely:—

    01. Where the taxable income does not exceed Rs400,000: the tax rate shall be zero percent

    02. Where the taxable income exceeds Rs400,000 but does not exceed Rs800,000: the tax rate shall be Rs1,000

    03. Where the taxable income exceeds Rs800,000 but does not exceed Rs1,200,000: the tax rate shall be Rs2,000

    04. Where the taxable income exceeds Rs1,200,000 but does not exceed Rs2,500,000: the tax rate shall be 5 percent of the amount exceeding Rs1,200,000

    05. Where the taxable income exceeds Rs2,500,000 but does not exceed Rs4,000,000: the tax rate shall be 65,000 + 15 percent of the amount exceeding Rs. 2,500,000

    06. Where the taxable income exceeds Rs4,000,000 but does not exceed Rs8,000,000: the tax rate shall be 290,000 + 20 percent of the amount exceeding Rs4,000,000

    07. Where the taxable income exceeds Rs. 8,000,000: the tax rate shall be Rs1,090,000 + 25 percent of the amount exceeding Rs8,000,000

    Provided that where the taxable income exceeds eight hundred thousand rupees the minimum tax payable shall be two thousand rupees.

  • Sales tax rates for services rendered on immovable properties

    Sales tax rates for services rendered on immovable properties

    The Sindh Revenue Board (SRB) has recently announced the sales tax rates applicable to services related to the sale and purchase of immovable properties within the province for the tax year 2020.

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  • FBR directs withholding agents to clearly mention CNIC of non-ATL persons

    FBR directs withholding agents to clearly mention CNIC of non-ATL persons

    KARACHI: Withholding agents have been directed to clearly mention the Computerized Identity Card Number (CNIC) of persons whose amounts have been withheld under various transactions.

    The withholding agents have been directed to provide CNIC particularly those persons who are not appearing on the Act Taxpayers List (ATL).

    Sources in Federal Board of Revenue (FBR) said that withholding agents will submit biannual statement related to transactions for the period July – December 2019 during this month.

    The FBR officials said that the withholding agents will clearly specify the names, CNIC or any other identification of such persons in the withholding statement so that legal provisions to enforce return can come into effect.

    Where a withholding agent is of the opinion that hundred percent increased tax is not required to be collected on the basis that the person was not required to file return, the withholding agent shall furnish an intimation to the Commissioner setting out the basis on which the person is not required to file return.

    The Commissioner shall accept or reject the contention on the basis of existing law. In case the Commissioner fails to respond within thirty days, permission shall be deemed to be granted to not deduct tax at hundred percent increased rate.

    Where the person’s tax has been deducted or collected at hundred percent increased rate and the person fails to file return of income for the year for which tax was deducted, the Commissioner shall make a provisional assessment within sixty days of the due date for filing of return by imputing income so that tax on imputed income is equal to the hundred percent increased tax deducted or collected from such person and the imputed income shall be treated as concealed income.

    The provisional assessment shall be of no effect if the person files return within forty five days of completion of provisional assessment and the provisions of the Ordinance shall apply accordingly.

    Where return is not filed within forty five days of provisional assessment, it shall be treated as final assessment and the Commissioner shall initiate penalty proceedings for concealment of income.

  • Equity market falls by 214 points on political uncertainty

    Equity market falls by 214 points on political uncertainty

    KARACHI: The equity market fell by 214 points on Wednesday owing to political uncertainty as allies of ruling party are showing disapproval.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,993 points as against 43,207 points showing a decline of 214 points.

    Analysts at Arif Habib Limited said that political uncertainty took controls over sentiment today.

    Allies of PTI are one by one showing disapproval of their policies and hinting a crisis in the making that caused investors to be safe than sorry.

    Investors kept booking profit at current levels which exerted pressure on oil & gas chain (i.e. OMCs, E&P and Refineries).

    Banking sector also remained slow, whereas Cement sector had some buying interest that caused prices to be on the higher side.

    Overall, Cement sector led the volumes with 34.4 million shares, followed by Banks (32.9 million) and Technology (16.2 million).

    Among scrips, BOP led the volumes with 19.6 million shares, followed by MLCF (18.2 million) and TRG (9.2 million).

    Sectors contributing to the performance include E&P (-553 points), Power (-40 points), Fertilizer (-25 points), other (-23 points), Banks (-21 points).

    Volumes declined further from 249.7 million shares to 171.3 million shares (-32 percent DoD). Average traded value also declined by 22 percent to reach US$ 39.6 million as against US$ 50.4 million.

    Stocks that contributed significantly to the volumes include BOP, MLCF, TRG, STPL and UNITY, which formed 37 percent of total volumes.

    Stocks that contributed positively include MCB (+18 points), PAKT (+7 points), DGKC (+7 points), AICL (+7 points) and FML (+6 points). Stocks that contributed negatively include HUBC (-35 points), PPL (-27 points), PSEL (-23 points), DAWH (-14 points), and POL (-12 points).

  • Worst weather halts flight operation at Skardu Airport

    Worst weather halts flight operation at Skardu Airport

    KARACHI: Worst weather conditions have halted flight operations at the world’s highest airports i.e. Skardu Airport, a statement said on Wednesday.

    Worst weather conditions at Skardu Airport, one of the world’s heighest airports, has halted flight operations.

    Skardu Airport is located at 7500 feet high and is considered one of the tallest airports in the world.

    Skardu Airport is also known as Lifeline Airport.

    Skardu Airport has experienced heavy snow fall from Sunday to Wednesday.

    More then 18 inch snow has been accumulated at airfield during the period.

    Snow removal work from car parking area, access road, runway and maneuvering area started on Tuesday at 09.00 hours Pakistan Standard Time (PST) with all available resources including one snow plough machine (Babcat) and 3 tractors.

    4000 feet of runway from threshold runway 14 has been cleared till Wednesday.

    Runway 14/32 is still blocked due to snow. Local administration is also helping Civil Aviation Authority (CAA) in this regard.

  • Rupee gains seven paisas on inflows

    Rupee gains seven paisas on inflows

    KARACHI: The Pak Rupee gained seven paisas against dollar on Wednesday owing to inflows of export receipts and workers remittances, dealers said.

    The rupee ended Rs154.78 to the dollar from previous day’s closing of Rs154.85 in interbank foreign exchange market.

    The dealers said that the rupee was appreciated owing to inflows of export receipts and workers remittances. They said that improved economic indicators helped the rupee to gain.

    The foreign currency market was initiated in the range of Rs154.85 and Rs154.89. The market recorded day high of Rs154.85 and low of Rs154.78 and closed at Rs154.78.

    The exchange rate in open market witnessed stable rupee value. The buying and selling of the dollar was recorded at Rs154.70/Rs155.00, the same previous day’s level, in cash ready market.

  • Income tax return filing hits new record high

    Income tax return filing hits new record high

    KARACHI: Income tax return filing has increased to a new record high of 2.76 million as people making compliance to avoid 100 percent additional tax on persons not appearing on Active Taxpayers List (ATL).

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