KARACHI: The Federal Board of Revenue (FBR) has rejected an income tax credit worth around Rs5.5 billion to taxpayers who neglected to produce bank Challan against their deducted withholding tax, official sources stated on Thursday.
The tax is adjusted against the due financial obligation of the taxpayers. The electricity, providing company is the withholding agent, which will deduct the amount and deposit the same to the national treasury.
The authors stated that the deducted withholding tax amounting Rs1.5 billion for 2013 and further Rs4 billion for 2014 was not deposited. When contacted, a senior officer of Chief Commissioner RTO-II, pronounced that the agency had not disallowed any tax credit for those taxpayers, who produced Challan of deposited withholding tax.
This budgetary proposal of the FBR would not take in any impact on the general masses, as common people generally travel in economy category. Likewise, the regime is working to enhance withholding tax from six to ten percent for the professionals like doctors, lawyers, charted accountants and others.