The Federal Board of Revenue (FBR) issued a clarification on Wednesday, emphasizing that taxpayer data, including bank account numbers, exists only in an offline mode and is not linked with any banks or financial institutions.
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FBR, Pakistan’s national tax collecting agency, plays a crucial role in the country’s economy. Pakistan Revenue is committed to providing readers with the latest updates and developments regarding FBR activities.
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Withholding tax rates on petroleum products
The Federal Board of Revenue (FBR) has released updated rates for withholding income tax on petroleum products, incorporating amendments introduced through the Finance Act, 2021.
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Calculation of asset cost for income tax purpose
Section 76 of Income Tax Ordinance, 2001 has defined the procedure for calculating income tax against cost incurred on purchase of assets.
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Banking payment must for asset purchase
Banking payment has been made must for asset purchase by the tax authorities in a move aimed at promoting transparency and curbing tax evasion.
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Disposal and acquisition of assets under tax law
Disposal and acquisition of assets under tax law have been explained under Section 75 of 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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Rules to prevent double deduction under income tax law
In the intricate landscape of taxation, ensuring fairness and preventing duplicity is paramount. Section 73 of the Income Tax Ordinance, 2001, as updated up to June 30, 2021, serves this purpose by delineating rules to prevent double derivation and double deductions.
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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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Customs clears first mango consignment under TIR
Pakistan Customs has successfully cleared the first consignment of mangoes bound for Moscow, Russia, under the International Transportation of Goods – TIR Convention.
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Tax on income from ceased business
Section 72 of the Income Tax Ordinance, 2001 has outlined tax on income from ceases business. The Federal Board of Revenue (FBR) has incorporated these regulations into the Ordinance, ensuring that taxpayers understand the implications of income derived from a business, activity, investment, or other sources that have ceased.
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