Section 83 of the Income Tax Ordinance, 2001 lays out specific conditions that define a resident company during a tax year.
(more…)Author: Faisal Shahnawaz
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Resident individuals defined under tax law
The Federal Board of Revenue (FBR) has shed light on the criteria for determining resident individuals for taxation under Section 82 of the Income Tax Ordinance, 2001.
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Normal tax year to run through July 01 to June 30
Normal tax year to run through July 01 to June 30 as defined under Section 74 of the Income Tax Ordinance, 2001. This provision has been updated with the Finance Act, 2021, and includes some important special provisions.
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Withholding income tax rates on prize bonds
Federal Board of Revenue (FBR) has issued updated rates of withholding income tax on winning of prize bonds during fiscal year 2021-2022.
The withholding tax rates have been updated after incorporating changes made through Finance Act, 2021.
WITHHOLDING TAX CARD 2021-2022
The FBR collects withholding tax under Section 156 of the Income Tax Ordinance, 2001.
The withholding tax shall be collected from every person making payment on account of winning of prize on prize bond, cross word, raffle, lottery and quiz from recipient of prize or winning at the time of the prize or winnings are actually paid.
A tax rate of 15 per cent of the gross amount shall be collected on payments made for prize on prize bond and cross word. The rate shall be increased by 100 per cent if the person is not appearing on the Active Taxpayers List (ATL).
A tax rate at 20 per cent of the gross amount shall be collected on payments on winning from a raffle, lottery, prize on winning a quiz, prize, offered by companies for promotion of sale crosswords puzzles.
However, the tax rate shall be increased by 100 per cent i.e. 40 per cent if person is not appearing on the ATL.
The tax rate shall be final against tax liability of the person.
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PKR gains 11 paisas against dollar in interbank
KARACHI: The Pak Rupee (PKR) made a recovery of 11 paisas against the dollar on Tuesday. The local currency recovered the value despite dollar demand for import payments.
The rupee ended at Rs164.08 to the dollar in interbank foreign exchange market. The local unit ended at Rs164.19 to the dollar a day earlier.
Currency experts said that sufficient dollars were available in the market during the day. This helped the local currency to make recovery.
It is important the rupee made gain ahead of two weekly public holidays. The market will remain closed on August 18 and August 19, 2021 due to Muharram.
The rupee was remained under pressure since start of current fiscal year. The local currency has lost Rs6.54 against the dollar since July 01, 2021.
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KIBOR rates on August 17, 2021
KARACHI: State Bank of Pakistan (SBP) on Tuesday issued following Karachi Interbank Offered Rates (KIBOR) on August 17, 2021.
Tenor BID OFFER 1 – Week 6.92 7.42 2 – Week 6.95 7.45 1 – Month 7.01 7.51 3 – Month 7.14 7.39 6 – Month 7.31 7.56 9 – Month 7.43 7.93 1 – Year 7.52 8.02 -
SBP issues customers exchange rates for August 17
KARACHI, August 17, 2021: The State Bank of Pakistan (SBP) has released the latest exchange rates for customers on Tuesday, August 17, 2021.
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Retailers to collect invoice fee from customers
KARACHI: The Tier-1 retailers will collect one rupee from customers against issuance of invoice from their point of sale (POS) machine.
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Paper income tax return draft forms issued
ISLAMABAD: The Federal Board of Revenue (FBR) on Monday issued draft paper income tax return form for tax year 2021.
The FBR issued SRO 1022(I)/2021 to notify the draft income tax return forms.
The revenue body invited objection or suggestions within seven days from date of issuance of the SRO. “Objections or suggestions, which may be received from any person in respect of the said draft, before the expiry of the aforesaid period, shall be considered by the Federal Board of Revenue.”
The FBR issued the draft income tax returns for individuals driving income other than salary.
The draft paper income tax return form has been issued as one and half months left for the last date i.e. September 30, 2021.
Tax experts said that the FBR has already notified electronic income tax return form for taxpayers including salaried persons, business individuals, association of persons and companies. The return forms were issued through SRO 853(I)/2021 dated July 01, 2021.
The experts said that the FBR had given statutory time of three months for the return filing on the forms issued on July 01, 2021. However, the latest draft return forms would be finalized after considerable time and then the statutory last date for filing the paper return forms would be start on issuance of the forms.
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SBP launches SME Asaan Finance scheme
KARACHI – In a move aimed at bolstering small and medium-sized enterprises (SMEs) in Pakistan, the State Bank of Pakistan (SBP) unveiled the SME Asaan Finance scheme on Monday, allowing banks to lend up to Rs10 million to qualifying businesses.
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