ISLAMABAD: (BN Web Desk)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.