Business

Non-filers to face higher taxes on bank withdrawals over Rs50,000

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Staff Reporter

ISLAMABAD: The Federal Board of Revenue (FBR) increased tax reduction on bank cash withdrawal for non-filers, reduced  withholding tax rates for property buyers in an attempt to give relief to true investors.

According to the new directive, non-filers withdrawing Rs50,000 or more on a single day from their bank accounts will now be taxed at 0.8percent instead of the earlier 0.6pc.

The advance tax would be deducted by all banking companies and would be recoverable against the final liability of the taxpayer.

In the real estate industrysignificant alterations have been brought to further tax structure under Sections 236C and 236K of the Income Tax Ordinance.

FBR lowered the withholding tax rate for property purchasers by 1.5% on all slabs while raising the rate for sellers by 1.5% to prevent evasion of capital gains tax.

The top tax-collecting agency stated these are designed to promote compliance, deter cash transactions, and simplify taxation of property while avoiding unequal contribution by sellers on their capital gains.

Tax according to Property Value

Property Value Range Old Tax Rate New Tax Rate
Up to Rs. 5 crore 3.0% 1.5%
Up to Rs. 10 crore 3.5% 2.0%
More than Rs. 10 crore 4.0% 2.5%
Staff Reporter

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