Tag: withholding tax card 2020-2021

ISLAMABAD: Federal Board of Revenue (FBR) has notified rate of advance tax on amount remitted abroad through credit or debit cards.

The FBR issued withholding tax card for tax year 2020-2021 (updated till June 30, 2020) after incorporating amendments made to Income Tax Ordinance, 2001 through Finance Act, 2020.

The FBR collects advance tax under Section 236Y from persons remit amounts abroad.

Every banking company shall collect advance tax at the rate of one percent from persons who has completed a transaction of credit card or debit card or pre-paid card, with a person outside Pakistan at the time of transfer of any sum remitted outside Pakistan through a transaction of a credit card of debit card or pre-paid card.

The tax rate shall be two percent for persons not appearing on the Active Taxpayers List (ATL).

The tax shall be adjustable against the total liability of a person.

ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding tax rate on non-cash banking transactions made by persons not appearing on the Active Taxpayers List (ATL).

The FBR issued withholding tax card 2020/2021 updated up to June 30, 2020.

The FBR said that 0.6 percent withholding tax rate is applicable on non-cash banking transactions under Section 236P of Income Tax Ordinance, 2001. It said that every banking company shall collect withholding tax from persons not on the ATL at the time of sale of such instruments. The tax so deducted/collected shall be adjustable.

Under the Section 236P:

(i) Every banking company shall collect advance tax from a person whose name is not appearing in the Active Taxpayers List on sale of instruments, including demand draft, pay order, special deposit receipts, cash deposit receipt, short term deposit receipt, call deposit receipt and rupee travelers’ cheque, where payment for sum total of all transactions exceed Rs50,000 in a day.

(ii) Every banking company shall collect advance tax from a person whose name is not appearing in the active taxpayers list on transfer of any sum through cheque or clearing, interbank or interbank transfers through cheque, online/telegraphic/mail transfer, where payment for sum total of all transactions exceeds Rs50,000 in a day.

The Federal Board of Revenue (FBR) has updated the withholding tax rates on the purchase of domestic and international air tickets for the tax year 2021. According to the FBR, this update follows the incorporation of amendments made to the Income Tax Ordinance, 2001 through the Finance Act, 2020.

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ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding tax rate on payment of educational fee for tax year 2021.

The FBR issued withholding tax card 2020-2021 (updated up to June 30, 2020) after incorporating amendment to Income Tax Ordinance, 2001 through Finance Act, 2020.

Under Section 236I of Income Tax Ordinance, 2001, every person preparing fee voucher or challan shall collect/deduct withholding tax from the person depositing/paying fee at the time of payment of fee. The tax paid as withholding tax is adjustable against payable tax liability.

Every Educational institution has to collect advance tax on the amount of fee (inclusive of tuition fee & all charges received by the educational institution, by whatever name called, excluding the amount which is refundable) exceeding Rs. 200,000 per annum ( other than an amount paid by way of scholarship) at the rate of five percent from the persons not appearing in the Active Taxpayers List (ATL).

Through Finance Act, 2020 the persons filing income tax returns and are on the ATL are no more require to pay advance tax at the time of paying educational fee.

ISLAMABAD: Federal Board of Revenue (FBR) has issued withholding tax rates on sales made by manufacturers to retailers, wholesalers and distributors during tax year 2021.

The FBR issued the withholding tax card 2020-2021 (updated up to June 30, 2020) incorporating amendment made to Income Tax Ordinance, 2001 made through Finance Act, 2020.

Under section 236G of the Ordinance, every manufacture or commercial importer of electronics sugar, cement, iron and steel products, fertilizers, motorcycles, pesticides, cigarettes glass, textile, beverages, paint or foam sector shall collect/deduct withholding tax from distributor, wholesaler and dealer at the time of sale.

Advance tax has to be collected from wholesaler, distributor and dealers at the time of sales made to them:

In case of fertilizers the withholding tax rate shall be 0.7 percent of gross amount. The tax rate shall be increased by 100 percent in csae persons are not on the Active Taxpayers List (ATL).

In case of other than fertilizers the tax rate shall be 0.1 percent of gross amount. The tax rate shall be 0.2 percent of gross amount if persons not on the ATL.

The tax withheld under this section shall be adjustable.

Under Section 236H of the Ordinance, every manufacture ,distributor, dealer, wholesaler or commercial importer of electronics, sugar, cement, iron & steel products, motorcycles, pesticides, Cigarettes glass, textile, beverages, paint or foam sector shall collect/deduct from every retailer at the time of sale.

Advance tax has to be collected from retailers at the time of sales made to them:

In case of electronics the withholding tax rate shall be 1 percent of the gross amount and the rate shall be 2 percent of gross amount if persons are not on the ATL.

The withholding tax rate under this section for others shall be 0.5 percent of gross amount and the rate shall be 1 percent in case persons are not on the ATL.

The tax collected/deducted under this section shall be adjustable.

Under Section 236HA of the Ordinance, every person selling petroleum products shall collect/deduct withholding tax from every petrol pump operator or distributor, where such operator or distributor is not allowed a commission or discount at the time of sale of such products.

Advance tax has to be collected on ex-depot sale price of such petroleum products at the rate of 0.5 percent of ex-depot sale price and the rate shall be 1 percent of ex-depot sale price.

The withholding tax collected/deducted under this section shall be final.

ISLAMABAD: Federal Board of Revenue (FBR) has updated the withholding tax rates on sale and purchase of immovable properties for tax year 2021.

The FBR issued withholding tax card 2020-2021 (updated up to June 30, 2020) incorporating amendment to Income Tax Ordinance, 2001 through Finance Act, 2020.

Under Section 236C of Income Tax Ordinance, 2001 the withholding tax is to be collected on seller of immovable property.

Every person registering, recording or attesting or transfer including local authorities, housing authorities, housing society co-operative society and registrar or properties shall collect withholding tax from seller of immoveable property at the time of registering, recording or attesting the transfer.

The tax rate shall be one percent of the gross amount of the consideration received. In case of person not appearing on the Active Taxpayers list (ATL) the tax rate shall be two percent of the gross amount of the consideration received.

The withholding tax shall be minimum tax if property is acquired and disposed off within the same tax year; otherwise the tax shall be adjustable.

Advance tax, under this section, is not be collected if the immovable property is held for a period exceeding four years.

Under Section 236K of Income Tax Ordinance, 2001 the withholding tax shall be collected from purchaser of immovable property.

Under Section 236K (1) every person registering, recording or attesting or transfer including local authorities, housing authorities, housing society, co-operative society and registrar or properties shall deduct/collect withholding tax from the purchaser of immovable property at the time of registering, recording or attesting the transfer.

The withholding tax rate shall be one percent of the fair market value. In case the person is not on the ATL the tax rate shall be two percent of the fair market value.

The withheld tax shall be adjustable against total payable tax liability.

Section 236K (3) of the Ordinance deals with 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.

Any person responsible for collection of payment in installment shall deduct/collect from the purchaser or allottee of the immovable property at the time of payment of installment.

The tax rate shall be one percent of the fair market value. In case the person is not on the ATL the tax shall be two percent of the fair market value.

The tax shall be adjustable against total tax liability.

ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding tax rates for tax year 2021 to be paid by telephone subscribers for using phone services.

The FBR issued withholding tax card 2020-2021 (updated up to June 30, 2020) incorporating amendment made to Income Tax Ordinance, 2001 through Finance Act, 2020.

Under Section 236 of Income Tax Ordinance, 2001 person preparing telephone / Internet bill or issuing / selling prepared card for mobile phones / Internet shall deduct/collect withholding tax from telephone subscribers, Internet subscriber, purchaser of Internet Prepaid Cards, telephone subscriber and purchaser of prepaid telephone cards along with payment of telephone bill or at the time of issuance of or sales of prepared cards.

The withholding tax rates shall be:

(a) Telephone subscribers and internet

Monthly bill up to Rs, 1000: Nil

Bill exceeding 1,000: 10 percent

(b) in the case of subscriber of internet, mobile telephone and pre-paid internet or telephone card the withholding tax rate shall be 12.5 percent of the amount of bill or sales price of internet pre-paid card or prepaid telephone card or sale of units through any electronic medium or whatever form.

The collected/deducted withholding tax shall be adjustable against total payable tax liability.

ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding tax rate on the amount paid for electricity bills by commercial, industrial and domestic consumers.

The FBR issued withholding tax card 2020-2021 (updated up to June 30, 2020) incorporating amendment made to Income Tax Ordinance, 2001 through Finance Act, 2020.

Under Section 235 of Income Tax Ordinance, 2001 person preparing electricity bill shall collect withholding tax from commercial and Industrial consumers of electricity along with payment of electricity consumption charges.

The withholding tax rates for gross amount of Electricity Bill of Commercial and Industrial consumer:

Does not exceed Rs. 400: Rs. 0

Exceeds Rs. 400 but does not exceed Rs. 600: Rs. 80

Exceeds Rs. 600 but does not exceed Rs. 800: Rs. 100

Exceeds Rs. 800 but does not exceed Rs. 1000: Rs. 160

Exceeds Rs. 1000 but does not exceed Rs. 1500: Rs. 300

Exceeds Rs. 1500 but does not exceed Rs. 3000: Rs. 350

Exceeds Rs. 3000 but does not exceed Rs. 4,500: Rs. 450

Exceeds Rs. 4500 but does not exceed Rs. 6000: Rs. 500

Exceeds Rs. 6000 but does not exceed Rs. 10000: Rs. 650

Exceeds Rs. 10000 but does not exceed Rs. 15000: Rs. 1000

Exceeds Rs. 15000 but does not exceed Rs. 20000: Rs. 1500

Exceeds Rs. 20000: (i) at the rate of 12 percent for commercial consumers; and (ii) at the rate of 5 percent for industrial consumers

(i) Adjustable In case of company.

(ii) In case of other than company tax collected on Rs, 360000 amount of annual bill will be minimum tax.

(iii) in case other than company tax collected on amount over and above Rs 30000/- of monthly bill will be adjustable

(i) Minimum tax for CNG Stations (Ref S.234A) (3).

Under Section 235A of the Ordinance, person preparing electricity bill shall collect withholding tax from domestic consumers along with payment of electricity consumption charges.

Withholding tax rate on domestic consumers:

(i) if the amount of monthly bill is Rs,75,000/- or more: 7.5 percent

(ii) if the amount of monthly bill is less than Rs, 75,000: 0 percent

The tax deducted from billed amount for domestic consumers shall be adjustable.