Advance Income Tax
Thursday, October 15, 2009
Pay you First Quarterly installment of Advance Income Tax (Companies other than banking companies) by 15th October, 2009.Companies other than banking companies are liable to pay advance income tax for the current year in four installments.
Calculation Formula: (A x B/C)- D
Where
A = is the taxpayer's turnover for the quarter
B = is the tax assessed to the taxpayer for the latest tax year
C = is the taxpayer's turnover for the latest tax year
D = is tax paid in the quarter for which tax credit is allowed under section 168, other than tax deducted under section 155
- Tax liability under section 113 shall also be taken into account while working out payment of advance tax.
- In the absence of last assessed income or declared turnover, tax payable shall be estimated on the basis of quarterly current turnover.
- Adjustment for the tax already paid may be made.
Labels: advance income tax
posted @ 10:07 AM,
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Collection of Tax by A Stock Exchange
Tuesday, July 7, 2009
1. The reference has been made to the Board to clarify that who will take the credit of the tax withheld under clause (c) of sub-section (1) of section 233A of the Income Tax Ordinance, 2001. Whether the Member of the Stock Exchange or the seller of shares who did the trading of shares through the said Member?
2. The matter has been considered. Though the tax in respect of trading of shares is deducted from the member by the stock exchange yet the tax so withheld under clause (c) of sub-section (1) of section 233A of the Income Tax Ordinance, 2001, does not pertain to him exclusively. He is only an intermediary and the tax withheld under the aforesaid provisions of law, belongs to the seller of shares also who traded through him. Legally speaking, the seller is entitled to take the credit of the tax so withheld as well as the member in respect of the shares owned by him. The member of the stock exchange is the custodian of the record,as the transactions of shares are made through him on the stock exchange.
3. It is, therefore, clarified that the Member would certify the quantum of tax withheld from each person traded through him and shall furnish a statement, to the concerned Director General, RTO, for the verification of claim of the taxpayers who traded the shares through him.
2. The matter has been considered. Though the tax in respect of trading of shares is deducted from the member by the stock exchange yet the tax so withheld under clause (c) of sub-section (1) of section 233A of the Income Tax Ordinance, 2001, does not pertain to him exclusively. He is only an intermediary and the tax withheld under the aforesaid provisions of law, belongs to the seller of shares also who traded through him. Legally speaking, the seller is entitled to take the credit of the tax so withheld as well as the member in respect of the shares owned by him. The member of the stock exchange is the custodian of the record,as the transactions of shares are made through him on the stock exchange.
3. It is, therefore, clarified that the Member would certify the quantum of tax withheld from each person traded through him and shall furnish a statement, to the concerned Director General, RTO, for the verification of claim of the taxpayers who traded the shares through him.
Circular no. 02 of 2009 dated 26 March, 2009
Labels: advance income tax, FBR, Income Tax Circulars
posted @ 7:48 PM,
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Clarification Regarding Adjustments Of Payments Through Ledger Account
Monday, July 6, 2009
Under clause (b) of section 158 of the Income Tax Ordinance, 2001 (hereinafter referred as “Ordinance”), a person is required to deduct tax from an amount paid by the person at the, time the amount is actually paid. It has, however, been noticed that some inter-account adjustments of receivable/collectable against payable are carried out through ledger accounts or journals maintained by the persons and such “adjustments” are not construed as “payments” or “actually paid” and no tax is withheld therefrom.
2. Though the word “adjustment” has not been defined in the Ordinance yet it as a matter of common prudence that it is at par with the word “paid”, because by such “adjustment” the payables are reduced which amounts to “actual payment” by other means.
3. The matter has been examined. According to Black’s Law Dictionary, “adjustment” amounts to “an arrangement; a settlement”. This obviously means that payable settled by payment or inter-account adjustment of receivables against the payables tantamount to “actually paid” and thus attracts the provisions of clause (b) of section 158 of the Ordinance, whenever any such adjustment is made. It is, therefore, clarified that in such circumstances, the person who is making such interaccount adjustments is required to withhold tax under the relevant provisions of law at the relevant rates and in case of any default, provisions of the Ordinance shall apply accordingly.
Circular No. 01 of 2009 Income Tasx - February 20, 2009
Labels: advance income tax, FBR, Income Tax Circulars
posted @ 12:37 PM,
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Witholding Tax Returns of Salary Income
Friday, May 8, 2009
Comment:
Under the provisions of Income Tax Ordinance, 2001, there are two statements are required to be filed.
- Monthly:
- Annually:
Monthly Statement:
As per rule 44 (2) of the Income Tax Ordinance, 2001 statement of all witholding taxes deducted under section 148 to 156 B, 231A to 236 (including salary) is required to be filed within 20 days from the end of the month. Form used for the said purpose is available in Part X of IT Rules - Second Schedule.
Annual Statement:
As per rule 44 (1) of the Income Tax Ordinance, 2001 statement of witholding taxes under section 149 - salary is required to be filed within 2 months from the end of the year. Form used for the said purpose is available in Part VIII of IT Rules - Second Schedule.
Labels: advance income tax
posted @ 10:27 AM,
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Last date of Advance Income Tax
Thursday, March 12, 2009
Last Date is 15th March, 2009Individuals, Association of persons and companies are required to pay quarterly installment of advance income tax. Details are
Individuals and Association of persons:
are liable to pay advance tax for the current year in 4 installments
- equal to the latest assessed income tax (where their latest assessed taxable income is Rs.200,000/- or more)
Companies (other than banking companies):
are liable to pay advance tax for the current year in 4 installments
- equal to the latest assessed income tax or
- income tax payable on the current year's estimated income
- advance tax is also payable in the absence of the last assessed income on the basis of estimated quarterly profits of the current year.
Ref: Income Tax Ordinance, 2001, FBR
Labels: advance income tax, Taxation
posted @ 2:16 PM,
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