No revisions in rates for tax on cash withdrawal, FBR clarifies

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ISLAMABAD: The federal government has neither revised the rates or limits for tax on cash withdrawal from the bank accounts under section 231A, nor on the issuance of cash denominated bank instruments, such as pay orders and demand drafts, under section 231AA of Income Tax Ordinance 2001.

Strongly refuting the news appearing on some sections of media, the FBR spokesperson stated, “There has been no change in cash limits or tax rates in any of the two provisions of law. The only change which has been made through Finance (2nd Supplementary) Act 2019 is taking out the tax filers from the scope of both these provisions. Now, these withholding provisions are applicable only to non-filers.”

The spokesperson said that this huge concessionary step has been taken by the government to encourage commercial activity through banking channels.