Withholding tax up to 30% to be collected on profit from national saving schemes

Withholding tax up to 30% to be collected on profit from national saving schemes

ISLAMABAD: An important change has been made to income tax rate on profit from national saving scheme through Finance Act, 2021. A person not appearing on the Active Taxpayers List (ATL) is liable to pay 30 per cent as withholding income tax on profit from saving schemes.

The Central Directorate of National Savings (CDNS) in a notification said that rates of withholding tax on national saving schemes had been revised effective from July 01, 2021.

It said that amendments had been made in the Income Tax Ordinance, 2001 through Finance Act, 2021.

“Accordingly, the rate of tax for profit on debt imposed under Section 7B shall be 15 per cent effective from July 01, 2021. However, person not appearing in the ATL, the rate of tax required to be deducted or collected as the case may be, shall be increased by hundred per cent of the rate specified.”

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