FBR rejects revising tax rates for non-filers withdrawing cash over Rs 50,000

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ISLAMABAD: The Federal Board of Revenue (FBR) on Friday refuted reports regarding revising the tax rates for non-filers withdrawing cash worth over Rs 25,000.

In a statement issued to clarify the matter, the FBR stated that government has not revised rates or limits for withholding tax on cash withdrawal from bank accounts and on the issuance of cash denominated bank instruments.

There have been no changes in sections 231-A and 231-AA of the Income Tax Ordinance, FBR stated. Non-filers will pay a 0.6% withholding tax on withdrawal of cash amounting to over Rs50,000 and for making a demand draft of over Rs25,000.

FBR said that filers no longer have to pay withholding tax on bank transactions.

The clarification from the revenue board came after reports did the rounds on social media claiming that a 0.6% withholding tax had been imposed on non-filers on withdrawal of cash amounting to over Rs25,000.

There has been no change in cash limits or tax rates on withdrawal from bank accounts. Only change which has been made through Finance 2nd Supp Act 19 is taking out the tax filers from the scope of relevant law. Now these withholding provisions are applicable only to non-filers.

“Only change which has been made through Finance Second Supplementary Act 2019 is taking out the tax filers from the scope of relevant law. Now these withholding provisions are applicable only to non-filers,” he added.

 

6 COMMENTS

  1. We have come to know that banks are deducting 0.3% on cash withdrawal of more than Rs.50000/- from filer accounts. Bank says, they don’t have any official order from the authority concern for no deduction from FILER. Please check it

  2. No doubt FBR have to take actions of Non Filers, FBR or GOVT also have to define Non Filers in broad sense because these are the most of the people who not come under the Tax payer regim at all, so the poor people’s how become the Non Filers. Actually Non tax payer who is under the Tax regime become Non Filer, not the Poor’s who have only small source of income and they are punished. Thx

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