KARACHI: Every banking company shall collect withholding tax under Section 151(1)(b) of Income Tax Ordinance, 2001 from persons receiving profits on their deposits maintained at respective banks.
According to withholding tax card for tax year 2019, the Federal Board of Revenue (FBR) said that profit on debt paid by banking company or financial institutions on account or deposit maintained, shall collect withholding tax rates as per following:
Filer: 10 percent of the gross yield paid
Non-filer up to Rs500,000: 10 percent of the gross yield paid
Other non-filers: 17.5 percent of the gross yield paid
The FBR said that it will be final tax except Where
(i) Taxpayer is a company
(ii) profit on debt is taxable under section 7B of the ordinance.