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Tag: cash withdrawal

  • No change in tax rates on cash withdrawal: FBR

    No change in tax rates on cash withdrawal: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) has said that the government has not revised rates or limits of withholding tax on cash withdrawal from banks.

    In a statement on Thursday, the FBR said that the federal government has not revised rates or limits for tax on cash withdrawal from bank accounts under section 231A and on issuance of cash denominated bank instruments such as pay orders and demand drafts under section 231AA of Income Tax Ordinance 2001.

    The FBR spokesperson has strongly refuted such news appearing on some sections of media

    There has been no change in cash limits or tax rates in any of the two provisions of law.

    The only change which has been made through Finance 2nd Supplementary Act 2019 is taking out the tax filers from the scope of both these provisions.

    Now these withholding provisions are applicable only to non-filers, the spokesperson has further clarified.

    The spokesperson added that this huge concessionary step has been taken by the Government to encourage commercial activity through banking channels which needs to be appreciated.

  • Foreign Remittances: Non-filers get exemption on cash withdrawal

    Foreign Remittances: Non-filers get exemption on cash withdrawal

    KARACHI: The government has granted exemption from deduction of income tax on cash withdrawal by non-filers from Pak Rupee bank accounts, which have been opened for receiving foreign remittances.

    Through Finance Supplementary (Second Amendment) Act, 2019 a clause 101A has been inserted to Second Schedule of Income Tax Ordinance, 2001.

    It said: “The provisions of Section 231A shall not apply to Pak Rupee account if the deposits in the account are made solely from foreign remittances credited directly into such account.”

    The Section 231A is related to deduction of withholding tax on cash withdrawal from banking system.

    The government through the latest Act already exempted deduction of withholding tax on cash withdrawal by filers of income tax returns.

    The instant clause also exempts the non-filers of income tax returns if their bank accounts receive foreign remittances.

    Sources in Federal Board of Revenue (FBR) said that the measures have been taken to promote inflows of foreign remittances through normal banking system.

    The sources further said that on normal transactions by non-filers a tax rate of 0.6 percent will apply on cash withdrawal of Rs50,000 per day.

  • Reform package exempts withholding tax for rupee accounts receiving foreign remittances

    Reform package exempts withholding tax for rupee accounts receiving foreign remittances

    KARACHI: The new reform package has allowed exemption from collection of withholding tax on cash withdrawals from a bank account maintained in local currency where deposits are made through foreign remittances.

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

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

    Pakistan has decided that only non-filers of income tax returns will pay withholding tax on cash and non-cash banking transactions.

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  • Finance Minister Asad Umar Unveils Economic Reform Package to Boost Investment and Exports

    Finance Minister Asad Umar Unveils Economic Reform Package to Boost Investment and Exports

    On Wednesday, Finance Minister Asad Umar took the floor of the house to present a comprehensive economic reform package aimed at promoting investment and exports in Pakistan.

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  • Govt. agrees to abolish withholding tax on cash withdrawal: KCCI

    Govt. agrees to abolish withholding tax on cash withdrawal: KCCI

    KARACHI: The government has agreed to abolish the withholding tax on cash withdrawals from bank accounts by filers.

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