Federal Board of Revenue (FBR) has updated rates of withholding tax on usage of telephone and internet to be applicable for the year 2021-2022.
The revenue body issued the withholding tax rates after incorporating amendments brought into the Income Tax Ordinance, 2001 through Finance Act, 2021.
The FBR collects withholding tax on usage of phone and internet under Section 236 of the Income Tax Ordinance, 2001.
WITHHOLDING TAX CARD 2021/2022
Following are withholding tax rates on usage of telephone and internet:
Person preparing telephone/internet bill or issuing / selling prepaid card for mobile phones / internet shall collect the tax from telephone subscribers, internet subscribers, 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 prepaid cards.
(a) telephone subscribers and internet
There shall be no tax on monthly bill up to Rs1,000
Bill exceeding Rs1,000 the tax rate shall be 10 per cent.
(b) In the case of subscriber of internet, mobile telephone and prepaid internet or telephone card, the tax rate shall be 10 per cent for tax year 2022 and 8 per cent onwards of the amount bill or sales price of internet prepaid card or prepaid telephone card or sale of units through any electronic medium or whatever form.
The tax shall be adjustable against person’s tax liability.