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ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday issued notifications for implementing enhanced valuation of immovable properties in 20 major cities.
The new valuations will be applicable from July 24, 2019.
Following are the new valuation for 20 cities:
(1) Abbottabad SRO 829(I)/2019
(2) Bahawalpur SRO 830(I)/2019
(3) Faisalabad SRO 831(I)/2019
(4) Gujranwala SRO 846(I)/2019
KARACHI: Federal Board of Revenue (FBR) has issued withholding tax rates for winning prize bonds, cross word, raffle, lottery and quiz for tax year 2019/2020 as effective from July 01, 2019.
The FBR said that every person making payment shall collect withholding tax from persons on active taxpayers list (ATL) and double the amount of the tax from persons not appearing on the ATL at the time the prize or winning were actually paid.
The collection of withholding tax under Section 156 of Income Tax Ordinance, 2001 shall be final.
The withholding tax shall be collected at the following rates:
(I) Payments made for prize on quiz bond and cross word the tax rate shall be 15 percent of the gross amount.
Persons not appearing in the Active Taxpayers’ List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 30 percent of the gross amount.
(II) Payments on winning from a raffle, lottery, prize on winning a quiz, prize, offered by companies for promotion of sale crossword puzzles the tax rate shall be 20 percent of the gross amount.
Persons not appearing in the Active Taxpayers’ List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 40 percent of the gross amount.
ISLAMABAD: Federal Board of Revenue (FBR) has directed all the banks to provide details of Benami account holders within next 15 days.
FBR spokesman on Monday said that FBR chairman Shabbar Zaidi had sent communication to all the heads of banks asking them to provide details of Benami accounts.
The spokesman said that the FBR desired the banks should obtain details of Benami account holders themselves under Benami Act 2017. “The FBR does not want to make direct contact with account holders,” the spokesman said.
The chairman referred My 30, 2019 meeting with the heads of banks in which it was decided that the banks would arrange details of Banami bank accounts.
The chairman assured the banks that the details would be kept secret. The spokesman further said that the FBR had authorized to identify Benami holders under the Benami Act, 2017.
The chairman further desired that FBR and banks should work together to get optimum results. The chairman said that to identify the Benami bank account holders the banks cooperation was very important.
ISLAMABAD, February 20, 2024 – The Federal Board of Revenue (FBR) has issued a clarification stating that female consumers can present the CNIC of their husband or father when making purchases above Rs50,000.
(more…)KARACHI: Federal Board of Revenue (FBR) has notified withholding tax rate for active and non-active taxpayers at the time of sale and purchase of immovable properties as amended through Finance Act, 2019 and applicable from July 01, 2019.
The FBR said that every person registering, recording or attesting or transfer including local authorities, housing authorities, housing society cooperative society and registrar or properties shall collect withholding tax under Section 236C of Income Tax Ordinance, 2001 from seller of immovable
property at the time of registering, recording or attesting the transfer.
The withholding tax rate shall be one percent of gross amount of the considering received in case of active taxpayer, who filed their income tax return within due date.
Persons not appearing in the Active Taxpayers’ List : The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the
Ordinance), i.e 2 percent of the gross amount of the consideration received.
The tax shall be minimum tax if property is acquired and disposed off within the same tax year; Otherwise adjustable.
Advance tax, under this section, is not be collected if the immovable property is held for a period exceeding five25 years.
The FBR said that every person registering, recording or attesting or Transfer including local authorities, housing authorities, Housing Society, Co-operative Society and registrar or properties shall collect adjustable withholding tax from the purchaser of immovable properties at the time of registering, recording of immovable properties under Section 236K of Income Tax Ordinance, 2001.
Under Section 236K(1) the tax rate shall be one percent of the fair market value for active taxpayers.
Persons not appearing in the Active Taxpayers’ List : The applicable tax rate is to be increased by 100% (Rule-1 of Tenth Schedule to the Ordinance), i.e 2 percent of the fair market value.
Advance Tax on payment of installment in respect of purchase of allotment of immovable property where transfer is to be effected after making payment of all installments Under Section 236K (3) the tax rate shall be one percent of the fair market value.
Persons not appearing in the Active Taxpayers’ List : The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e 2 percent of the fair market value.
ISLAMABAD: Shabbar Zaidi, Chairman, Federal Board of Revenue (FBR) on Friday said that the government will not compromise documentation of economy by surrendering condition of CNIC on purchases.
He said that the condition of CNIC had been enforced on purchases above Rs50,000.
Speaking at a seminar organized by Sustainable Development Policy Initiative (SDPI) on Wednesday, he said that priority of the government was to enhance the tax net and expend tax base to documenting the country’s economy. And taxation is the only way to forward for equitable distribution of wealth, as we cannot have stabilized and equitable society unless we have a fare taxation system, he added.
The FBR chairman said that due to presumptive tax regime, we actually dissociated the taxation from the economy, where taxing the real income was out of question.
The incumbent government and the International Monitory Fund (IMF) are on the same page, as there was no disagreement by the government on the measures proposed by the IMF, especially the taxation measure, he said.
The chairman said that the government would not bow down against the pressure, protests and lame excuses of the businesses and industries.
Over the decades the policies of the successive governments make Pakistan a trading state rather a sami-manufacturing state, where the country is importing everything from mineral water to foods items and never worked-out on import substitution.
While raising the concerns over the open transit trade agreement with Afghanistan, he said the agreement was being exploited and abused by the smugglers which negatively impacted the local industry.
Pakistan needed to review this agreement and should take stringent measures to control illicit trade on Pak-Afghan border, he said.
There are around 100 thousand companies registered with the government of Pakistan, where only 60 thousands file their returns, which shows the level of tax compliance.
He said the measures taken in the current federal budget would fundamentally change the course of history of Pakistan.
The government was taking steps to redress the institutional corruption through automation of the taxation system, the Chairman FBR said.
He said that it is his responsibility to improve the tax base under the leadership of Prime Minister Imran Khan.
Hawala and Hundi have inflicted a huge loss on the country’s economy,” he said and added measures were being taken to include the middle class in the tax net.
ISLAMABAD: Federal Board of Revenue (FBR) has issued withholding tax card for tax year 2019/2020 effective from July 01, 2019 under which persons receiving profit from bank deposits or investment in national saving schemes shall pay up to 30 percent, if not on the Active Taxpayers List (ATL).
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KARACHI: Regional Tax Office (RTO) –II Karachi to launch drive from next week in order to facilitate people to file their annual income tax returns.
FBR teams will set up camp offices at large corporate and government offices besides visiting markets and shopping plazas to encourage salary and business individuals to file their returns, said Badaruddin Ahmed Qureshi, Chief Commissioner, Inland Revenue, RTO-II, Karachi at a press conference on Friday.
The chief commissioner said that the purpose of the facilitation drive was to achieve 5 million income tax return filers during next few years. “The FBR has already received over 2.1 million income tax returns for tax year 2018,” the chief commissioner said.
He further added that the last date for filing income tax returns for tax year 2018 had been extended up to August 02, 2019.
He said that in order to achieve five million-milestone the FBR launched several measures to encourage / force persons having taxable income to file their returns.
The chief commissioner said that in first phase the RTO Karachi would ask large corporate entities and provincial departments to assure return filing by their employees having taxable income.
The tax office identified that employees of large organizations such as Pakistan International Airlines (PIA), National Bank of Pakistan (NBP), Pakistan Railways (PR) had taxable income but were not filing their income tax returns.
He said that the RTO-II Karachi would set up camp offices at various organizations for the enforcement of return filing. The camp offices would be set up at PIA, NBP, SSGC, Police, KMC, Water Board, Sindh Building Control Authority etc.
The chief commissioner said that the office had received details of doctors. He said that Pakistan Medical and Dental Council (PMDC) had 68,000 registered doctors out of which only 6,500 were filing annual income tax returns.
The chief commissioner said that it would be difficult to conceal transactions in future as FBR with the help of other regulators had established electronic system for information sharing.
The chief commissioner said that the FBR was facing enforcement problems due to human resource capacity but in order to ensure compliance a NGO was being engaged for the task of return filing.
He said that the tax office had get volunteers from the NGO would file returns of those who did not want to pay fee of lawyers.
A training session for those volunteers had been held recently at the tax office.
ISLAMABAD: The Customs Wing has re-deployed and transferred 1,650 official positions to meet the challenging revenue target and particularly to control smuggling.
A statement said that in this context, a total of 180 posts in BS-16 have been re-designated while 1,568 posts in BS-16 have been redeployed across Pakistan. This shake up has not been kept limited to low grade positions but also 84 posts in BS-17 to BS-21 have also been re-deployed.
The bulk of the re-deployed customs officers have been shifted to strengthen the Customs enforcement side.
The transfer and posting orders have been issued. As a consequence of this re-deployment the Torkham corridor will become operational round the clock. The orders will enable the government to meet the demand from trade and industry to curb smuggling.
Customs automation efforts have lately been enabling it to handle more trade efficiently and reduce its reliance on human interface. Under Prime Minister’s instructions the Chairman Syed Shabbar Zaidi has instructed Customs to improve ease of doing business by expediting initiatives like implementation of WeBOC-Glo, ITTMS and trade related Pakistan Single Window.
KARACHI: Federal Board of Revenue (FBR) has issued withholding tax card for tax year 2019/2020 effective from July 01, 2019 under which every employer paying salary to employees above threshold income shall deduct withholding tax.
According to official documents made available to PkRevenue.com, the FBR said that every person responsible for paying salary to an employee shall deduct tax from the amount paid under Section 149 of Income Tax Ordinance, 2001.
As per Finance Act, 2019, the provisions of newly inserted 10th schedule of the Income Tax Ordinance, 2001 shall not apply on tax deducted under section 149. Under the Tenth Schedule the withholding tax so collected shall be increased by 100 percent in case of persons not appearing on the Active Taxpayers List (ATL).
As per Finance Act, 2019, the salary slabs as well as tax rates have been revised with effect from 01.07.2019. As such all withholding tax agents disbursing salary are required to implement the revised tax rates from the same date.
Following are the salary slabs and rates on annual salary income:
1. Where taxable income does not exceed Rs. 600,000: the tax rate shall be 0 percent
2. Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000: the tax rate shall be 5% of the amount exceeding Rs. 600,000
3. Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000: the tax rate shall be Rs. 30,000 plus 10% of the amount exceeding Rs. 1,200,000.
4. Where taxable income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000: the tax rate shall be Rs. 90,000 plus 15% of the amount exceeding Rs. 1,800,000
5. Where taxable income exceeds Rs. 2,500,000 but does not exceed Rs. 3,500,000: the tax rate shall be Rs. 195,000 plus 17.5% of the amount exceeding Rs. 2,500,000
6. Where taxable income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000: the tax rate shall be Rs. 370,000 plus 20% of the amount exceeding Rs. 3,500,000
7. Where taxable income exceeds Rs. 5,000,000 but does not exceed Rs. 8,000,000: the tax rate shall be Rs. 670,000 plus 22.5% of the amount exceeding Rs. 5,000,000
8. Where taxable income exceeds Rs. 8,000,000 but does not exceed Rs. 12,000,000: the tax rate shall be Rs.1,345,000 plus 25% of the amount exceeding Rs. 8,000,000
9. Where taxable income exceeds Rs. 12,000,000 but does not exceed Rs.30,000,000: the tax rate shall be Rs. 2,345,000 plus 27.5% of the amount exceeding Rs. 12,000,000
10. Where taxable income exceeds Rs. 30,000,000 but does not exceed Rs.50,000,000: the tax rate shall be Rs. 7,295,000 plus 30% of the amount exceeding Rs. 30,000,000
11. Where taxable income exceeds Rs. 50,000,000 but does not exceed Rs.75,000,000: the tax rate shall be Rs. 13,295,000 plus 32.5% of the amount exceeding Rs. 50,000,000
12. Where taxable income exceeds Rs.75,000,000: the tax rate shall be Rs. 21,420,000 plus 35% of the amount exceeding Rs 75,000,000″;
The FBR said that every person responsible for making payment for directorship fee or fee for attending board meeting or such fee by whatever name called under Section 149(3) of Income Tax Ordinance, 2001 shall collect 20 percent of gross amount paid.