FBR Imposes Higher Tax on Bank Withdrawals by Non-Filers

According to official documents, if non-filers withdraw more than PKR 50,000 daily from bank accounts, they will now face a 0.8% withholding tax on their transactions, up from the previous 0.6% rate.

The new revised tax rules focus on undocumented cash transactions and encourage individuals to file tax returns.

Earlier, the Senate’s Finance Committee had proposed a rise in the threshold to PKR 75,000, but the final rule remains the PKR 50,000 limit.

Every banking company is now authorised to deduct advance adjustable tax from non-filers under this provision.

FBR has also revised tax rules for real estate transactions:

Buyers of the property will benefit from a 1.5% reduction in withholding tax.
Sellers or transferors will face a 1.5% addition in tax with all slabs, planned to adjust capital gains on property sales.
Revised tax rules are reflected in Sections 236C and 236K of the Income Tax Ordinance.

Individuals who have had property for more than 15 years and have declared it in their tax returns will be released from withholding tax under Section 236C.

If the owner has lived in the property during this period, the exclusion still applies.

In addition to the new revised income tax rules, FBR has clarified audit immunity rules: taxpayers whose cases were selected for audit in any of the past three years will not be selected again during that period.

Wedding halls may have to pay taxes in KP

Earlier, a team of Khyber Pakhtunkhwa Revenue Authority (KPRA), headed by Assistant Collector Hizbullah Khan, held a meeting with the Wedding Hall Association of Haripur at the Sub-Office.

During the meeting, the KPRA team discussed matters related to Sales Tax on Services. During the session, the Assistant Collector advised all wedding hall owners to ensure the timely payment of tax and accurate submission of their monthly sales tax returns under the law.