Only non-filers to pay withholding tax on cash, non-cash banking transactions

KARACHI: The government has facilitated compliant taxpayers by abolishing withholding tax on cash withdrawal from banks by filers of income tax returns.

The facilitation has been extended through Finance Supplementary (Second Amendment) Bill, 2019, presented on January 23, 2019.

The government has proposed to delete the withholding tax rate at 0.3 percent for filers under Section 231A of Income Tax Ordinance, 2001.

However, the non-filers will remain pay at 0.6 percent on cash withdrawal above Rs50,000 in a day from banking system.

The non-filers are also required to pay 0.6 percent on making non-cash transactions under Section 236P of the Income Tax Ordinance, 2001.

Experts said that the curbs on non-compliant taxpayers would increase filing of income tax returns in future.

Copyright © PkRevenue.com 2019

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