06/11/2020
The FBR updated the rate of tax to be deducted under section 231A of Income Tax Ordinance shall be 0.6 percent of the cash amount withdrawn, for the person whose name is not appearing in the active taxpayers’ list.
The text of Section 231A is as follow:
231A. Cash withdrawal from a bank.—(1) Every banking company shall deduct tax at the rate specified in Division VI of Part IV of the First Schedule, if the payment for cash withdrawal, or the sum total of the payments for cash withdrawal in a day, exceeds fifty thousand rupees.
“Explanation.- For removal of doubt, it is clarified that the said fifty thousand rupees shall be aggregate withdrawals from all the bank accounts in a single day.”
The FBR also updated the rate of tax to be deducted under section shall be at the rate of 0.6%, of the transactions for the person whose name is not appearing in the ’ list.
Following is the text of Section 231AA of the Ordinance is:
. Advance tax on transactions in bank.— (1) Every banking company, non-banking financial institution, exchange company or any authorized dealer of foreign exchange shall collect advance tax at the time of sale against cash of any instrument, including Demand Draft, Pay Order, CDR, STDR, SDR, RTC, or any other instrument of bearer nature or on receipt of cash on cancellation of any of these instruments.
(2) Every company, -banking , exchange company or any authorized dealer of foreign exchange shall collect at the time of transfer of any sum against cash through online transfer, telegraphic transfer, mail transfer or any other mode of electronic transfer.
(3) The advance tax under this section shall be collected at the rate specified in of IV of the Schedule, where the sum total of payments for transactions mentioned in sub- (1) or -section (2) as the case may be, exceed rupees in a day.
Regards.
