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Tag: advance tax

  • Advance tax exempted on sale of immovable properties on holding period of above five years

    Advance tax exempted on sale of immovable properties on holding period of above five years

    KARACHI: The Federal Board of Revenue (FBR) has exempted the advance tax on sale of immovable property subject to the property is held for above five years.

    The officials of Federal Board of Revenue (FBR) said that advance tax under Sub-Section (1) of Section 236C of Income Tax Ordinance, 2001 would not be collected if the immovable property is held for a period exceeding five years.

    Under Sub Section 1 of Section 236C of the Income Tax Ordinance, 2001, Any person responsible for registering, recording or attesting transfer of any immovable property shall at the time of registering, recording or attesting the transfer shall collect from the seller or transferor advance tax at the rate specified in Division X of Part IV of the First Schedule:

    Explanation,—For removal of doubt, it is clarified that the person responsible for registering, recording or attesting transfer includes person responsible for registering, recording or attesting transfer for local authority, housing authority, housing society, co-operative society and registrar of properties.

    Provided that this sub-section shall not apply to a seller, being the dependant of a Shaheed belonging to Pakistan Armed Forces or a person who dies while in the service of the Pakistan Armed Forces or the service of Federal or Provincial Government, in respect of first sale of immovable property acquired from or allotted by the Federal Government or Provincial Government or any authority duly certified by the official allotment authority, and the property acquired or allotted is in recognition of or for services rendered by the Shaheed or the person who dies in service.

    (2) The Advance tax collected under sub-section (1) shall be adjustable

    Provided that where immovable property referred to in sub-section (1) is acquired and disposed of within the same tax year, the tax collected under this section shall be minimum tax.

    According to the ordinance the advance tax rate on sale of immovable properties is one percent of the gross amount of the consideration received. However, the tax rate shall be two percent if a person is not appearing on the Active Taxpayers List.

  • Finance Bill 2019: Advance tax increased by 900 percent on renewal of license by arhatis

    Finance Bill 2019: Advance tax increased by 900 percent on renewal of license by arhatis

    ISLAMABAD: The government has increased the advance tax by 900 percent (nine times) at the time of renewal of license by middleman of a commodity markets in agriculture sector.

    The tax rates have been increased through Finance Bill, 2019 and may be applicable from July 01, 2019.

    The Federal Board of Revenue (FBR) said that presently every market committee is required to collect advance tax from dealers, commission agents and arhatis at the time of issuance or renewal of licenses.

    Now the tax rates are being increase for:

    Class A from Rs10,000 to Rs100,000/-,

    Class B from Rs7,500 to Rs75,000/-,

    Class C from Rs5,000/- to Rs50,000; and

    for any other category from Rs5,000/- to Rs50,000/-.

    The tax has been collected under Section 236J of Income Tax Ordinance, 2001.

    According to the section:

    “236J. Advance tax on dealers, commission agents and arhatis etc.— (1) Every market committee shall collect advance tax from dealers, commission agents or arhatis, etc. at the rates specified in Division XVII of Part-IV of the First Schedule at the time of issuance or renewal of licences.

    (2) The advance tax collected under sub-section (1) shall be adjustable.

    (4) In this section “market committee” includes any committee or body formed under any provincial or local law made for the purposes of establishing, regulating or organizing agricultural, livestock and other commodity markets.”

  • Income Tax Ordinance 2001: advance tax on paying education fee abroad

    Income Tax Ordinance 2001: advance tax on paying education fee abroad

    KARACHI: Foreign exchange companies are responsible for collecting advance tax on remitting abroad the education related expenses.

    The Federal Board of Revenue (FBR) recently updated Income Tax Ordinance, 2001 under which Section 236R explained the advance tax on remitting amount abroad for education expenses.

    Section 236R: Collection of advance tax on education related expenses remitted abroad

    Sub-Section (1): There shall be collected advance tax at the rate specified in Division XXIIV of Part-IV of the First Schedule on the amount of education related expenses remitted abroad.

    Rate of collection of tax under section 236R shall be 5percent of the amount of total education related expenses.

    Sub-Section (2): Banks, financial institutions, foreign exchange companies or any other person responsible for remitting foreign currency abroad shall collect advance tax from the payer of education related expenses.

    Sub-Section (3): Tax collected under this section shall be adjustable against the income of the person remitting payment of education related expenses.

    Sub-Section (4): For the purpose of this section, “education related expenses” includes tuition fee, boarding and lodging expenses, any payment for distant learning to any institution or university in a foreign country and any other expense related or attributable to foreign education.

  • Provincial sales tax registered persons liable to pay advance income tax

    Provincial sales tax registered persons liable to pay advance income tax

    KARACHI – The Federal Board of Revenue (FBR) has announced that sales tax registered individuals with the provinces are now required to pay adjustable advance income tax, as per the recently updated Income Tax Ordinance, 2001.

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  • Income Tax Ordinance 2001: payment of advance tax on quarterly basis

    Income Tax Ordinance 2001: payment of advance tax on quarterly basis

    KARACHI: Taxpayers are liable to pay advance tax against their estimated annual income on quarterly basis under Income Tax Ordinance, 2001.

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  • No advance tax on sale, purchase of shares from February 01

    No advance tax on sale, purchase of shares from February 01

    No advance tax on sale and purchase of shares will be imposed from February 01, 2019 by the government of Pakistan.

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  • Non-filers allowed motor vehicle purchase on enhanced tax rates

    Non-filers allowed motor vehicle purchase on enhanced tax rates

    Non-filers of income tax return have been allowed to purchase motor vehicle on enhanced tax rates, according to a federal minister of Pakistan.

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  • PM task force proposes zero percent income tax on internet

    PM task force proposes zero percent income tax on internet

    Islamabad – In a move aimed at promoting the information technology (IT) industry in Pakistan, the Prime Minister’s Task Force has proposed the elimination of income tax on internet services.

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  • Advance tax on domestic, international air tickets adjustable

    Advance tax on domestic, international air tickets adjustable

    The Federal Board of Revenue (FBR) has recently introduced revised advance tax rates on both domestic and international air tickets to be collected from purchasers.

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  • KSE-100 gains 364 points on expected relief in mini budget

    KSE-100 gains 364 points on expected relief in mini budget

    KARACHI – The Pakistan Stock Exchange (PSX) saw a significant surge as the benchmark KSE-100 index ended the trading session with a gain of 364 points, closing at 39,413 points as opposed to 39,049 points, offering a positive start to the trading week.

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