We refer to the recent changes made in the Income Tax Ordinance, 2001 (through the Finance Act, 2014 (the Act), applicable with effect from July 1, 2014. Through the Act, a concept of filer and non-filer has been introduced in order to promote tax culture, discourage non-compliance with tax laws and address the concerns of citizens who pay due taxes regarding them having higher cost of business than tax evaders.
‘Filer’ as defined in the Ordinance means a taxpayer whose name appears in the active taxpayers’ list issued by the Federal Board of Revenue from time to time or is a holder of a taxpayers’ card. A ‘Non-Filer’ is a person who is not a filer.
A list of Active Taxpayers is available on the FBR’s website and can be accessed through following link:
www.fbr.gov.pk Home > e-Services > Active Taxpayer List (Income Tax)
Through this letter we would apprise you the separate rates of tax withholding on cash withdrawal and return on accounts, now prescribed for ‘filer’ and non-filer’.
1. PAYMENT OF PROFIT / RETURN ON ACCOUNTS / DEPOSITS MAINTAINED
|Azam Cloth Market, Lahore||10 per cent||15 per cent*|
*However if the profit / return paid is less than Rs 500,000, tax will be deducted at the rate of 10 percent. The excess 5 per cent tax deducted for non- filer shall be adjustable against tax liability at the time of filing of return of income.
2. CASH WITHDRAWALS EXCEEDING EXCESS OF RS. 50,000 IN A DAY.
|Azam Cloth Market, Lahore||0.3 per cent||0.5 per cent*|
It is further informed that only Nation Tax Number (NTN) certificate is not sufficient proof for availing the normal rate of tax withholding i.e. @10% on profit / Return on accounts and @0.3% on cash withdrawal.
We, at Faysal Bank Limited, Barkat Islamic Banking, take pride in having you as our customer and look forward to strengthening this relationship. For any further assistance or queries, please visit your branch or call our Customer Interaction Center at 111 06 06 06.
Faysal Bank Limited, Barkat Islamic Banking
Our hotline is available 24X7
ATM - Engro Polymer & Chemicals Ltd. Plant Site EZ/I/P-II-I Eastern Zone, Bin Qasim
Branch - Engro Polymer & Chemicals Ltd. Plant Site EZ/I/P-II-I Eastern Zone, Bin Qasim