KARACHI: The government has introduced a reduced rate of income tax of up to Rs5,000 for marriage functions organized in an area less than 500 square yards.
The reduced rate has been introduced through through Finance Supplementary (Second Amendment) Bill, 2019, presented on January 23, 2019.
According to amendment made to First Schedule of Income Tax Ordinance, 2001, the rate for function of marriage in a marriage hall, marquee or a community place with the total function area less than 500 square yard or, in case of a multi storied premises, with the largest total function area on one floor less than 500 square yards, shall be 5 percent of the bill ad valorem or Rs5,000 per function whichever is higher.
The existing rates of withholding tax for organizing functions are:
— 5 percent of the bill ad valorem or Rs. 20,000 per function, whichever is higher for Islamabad, Lahore, Multan,Faisalabad, Rawalpindi, Gujranwala, Bahawalpur, Sargodha, Sahiwal, Shekhurpura, Dera Ghazi Khan, Karachi, Hyderabad, Sukkur, Thatta, Larkana, Mirpur Khas, Nawabshah, Peshawar, Mardan, Abbottabad, Kohat, Dera Ismail Khan, Quetta, Sibi, Loralai, Khuzdar, Dera Murad Jamali and Turbat.
— 5 percent of the bill ad valorem or Rs. 10,000 per function, whichever is higher for cities other than those mentioned above.
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