ISLAMABAD (July 17 2010): The Federal Board of Revenue has made it mandatory for Association of Persons (AOPs) having annual turnover of Rs 50 million and above to pay advance tax under section 147 of the Income Tax Ordinance 2001. The FBR on Friday clarified that through amendments in section 147 of the Income Tax Ordinance, 2001 changes have been made in the advance tax regime.
Firstly, exemption on capital gains available for the purposes of this section has been omitted [clause (a) of sub-section (1) has been omitted. Secondly, the AOPs with annual turnover of Rs 50 million and above has also been made liable to pay advance tax under section 147 (sub-sections (2) & (4) amended). Thirdly, basic income threshold for the purposes of payment of advance tax under this section has been raised from Rs 200,000 to Rs 500,000 (sub-section (2) amended).
In order to ensure timely payment of advance tax during the relevant quarter, sub-section (5A) has been substituted to prescribe the amended dates for payment of quarterly advance tax as under: In respect of the September quarter, on or before September 25; in respect of the December quarter, on or before December 25; in respect of the March quarter, on or before March 25 and in respect of the June quarter, on or before June 15.
The rates of quarterly adjustable advance tax on capital gains from disposal/redemption of securities - not applicable to individual investors. Where holding period of a security is less than six months, the rate of advance tax would be 2 percent of the capital gains derived during the quarter. Where holding period of a security is more than six months but less than twelve moths, the rate of tax would be 1.5 percent of the capital gains derived during the quarter, the FBR added
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Firstly, exemption on capital gains available for the purposes of this section has been omitted [clause (a) of sub-section (1) has been omitted. Secondly, the AOPs with annual turnover of Rs 50 million and above has also been made liable to pay advance tax under section 147 (sub-sections (2) & (4) amended). Thirdly, basic income threshold for the purposes of payment of advance tax under this section has been raised from Rs 200,000 to Rs 500,000 (sub-section (2) amended).
In order to ensure timely payment of advance tax during the relevant quarter, sub-section (5A) has been substituted to prescribe the amended dates for payment of quarterly advance tax as under: In respect of the September quarter, on or before September 25; in respect of the December quarter, on or before December 25; in respect of the March quarter, on or before March 25 and in respect of the June quarter, on or before June 15.
The rates of quarterly adjustable advance tax on capital gains from disposal/redemption of securities - not applicable to individual investors. Where holding period of a security is less than six months, the rate of advance tax would be 2 percent of the capital gains derived during the quarter. Where holding period of a security is more than six months but less than twelve moths, the rate of tax would be 1.5 percent of the capital gains derived during the quarter, the FBR added
-www.brecorder.com
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