Withholding tax: Banks asked to return deductions

FBR has been reported to the Board that some of the banks were still deducting tax on bank instrument of non-filers

ISLAMABAD:
The Federal Board of Revenue has asked banks to refund the excess amount deducted in terms of withholding tax on bank transactions. Withholding Tax on bank instruments issued out of account has been reduced from 0.6 percent to 0.3 percent till September 30, 2015 through Presidential Ordinance. According to a statement issued by the FBR, it has been reported to the Board that some of the banks were still deducting tax on bank instrument of non-filers at 0.6 percent. FBR has directed the banks that if any bank has still deducted tax at 0.6 percent from July 13 onwards, the excess amount must be refunded and adjusted immediately.


Published in The Express Tribune, July 15th,  2015.

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