Finance Act, 2021: Withholding tax on banking transactions abolished; highlights of relief measures

ISLAMABAD: The Finance Act, 2021 has abolished the withholding tax on banking transactions that were applicable under Income Tax Ordinance, 2001. Following are the details of relief measures announced in the Finance Act, 2021: Deletion of 12 withholding taxes Provision Description 153B Collection of tax on payment of royalty to residents 231A Collection of tax […]

by Mrs. Anjum Shahnawaz

Finance Act, 2021: FBR to boost revenue collection through various revenue measures

Jul 1

Taxation

Finance Act, 2021: FBR to boost revenue collection through various revenue measures

ISLAMABAD: The Federal Board of Revenue (FBR) shall boost tax collection through various measures adopted through Finance Act, 2021. The changes have been implemented from Thursday July 01, 2021 for the fiscal year 2021/2022. The sources in the FBR said that the revenue measures are included a special regime for export of services at par […]

by Mrs. Anjum Shahnawaz

Finance Act, 2021: fixed allowance to be treated as salary for income tax deduction

Jul 1

Taxation

Finance Act, 2021: fixed allowance to be treated as salary for income tax deduction

ISLAMABAD: Any fixed amount paid to the employees on monthly basis shall be treated as salary for the purpose of income tax collection. Through Finance Act, 2021 an amendment has been made to Section 12 of the Income Tax Ordinance, 2001. The Section 12 of the Income Tax Ordinance, 2001 is read as: Salary.— (1) […]

by Mrs. Anjum Shahnawaz

Finance Act, 2021: New tax regime for small, medium enterprises introduced

Jul 1

Taxation

Finance Act, 2021: New tax regime for small, medium enterprises introduced

ISLAMABAD: A new tax regime has been introduced for small and medium enterprises offering options of reduced rate of income tax and final tax. Through Finance Act, 2021 a small and medium enterprise has been defined as a person who is engaged in manufacturing as defined in clause (iv) of sub-section (7) of section 153 […]

by Mrs. Anjum Shahnawaz

FBR to arrest persons on concealment above Rs25 million

Jul 1

Taxation

FBR to arrest persons on concealment above Rs25 million

ISLAMABAD: The Federal Board of Revenue (FBR) has been empowered to arrest a person for concealing above Rs25 million under code of criminal procedure. Through Finance Act, 2021 a new section 203B has been inserted to Income Tax Ordinance, 2001, which stated as follow: 203B. Power to arrest and prosecute: (1) Where on the basis […]

by Mrs. Anjum Shahnawaz

Finance Act, 2021: Taxpayers given three months to update business bank accounts

Jun 30

Budget 2021-2022

Finance Act, 2021: Taxpayers given three months to update business bank accounts

ISLAMABAD: Declaring business bank accounts has become mandatory from July 01, 2021 otherwise a monetary penalty would be imposed. However, taxpayers have been given to update their registration profile along with business bank accounts up to September 30, 2021. According to the Finance Act, 2021 a new definition has been included in the Income Tax […]

by Mrs. Anjum Shahnawaz