Tax Book 2023

Deduction / Payment of Tax Chapter- 23

(^) DEDUCTION OR COLLECTION OF TAX AT SOURCE FOR THE TAX YEAR 2021
(UNDER PART - V OF CHAPTER - X OF INCOME TAX ORDINANCE, 2001)
IMPORTANT NOTES:

1. The tax deducted or collected by the Federal Government or Provincial Government shall be deposited U/R 43(a) on the day the tax was collected or deducted
   AND U/R 43(b) within 7 days in other cases from the end of each week ending on every Sunday by remittance to the Government Treasury or deposit in an
   authorized branch of SBP or NBP.


2. The tax deducted or collected on remittance abroad to a non resident through SBP or any other banking company, prior to remitting abroad the said amount.


3. The advance tax under this chapter (covering sections 231A to 236X) shall not be collected in the case of withdrawals made by,-

(a) the Federal Government or a Provincial Government;

(b) a foreign diplomat or a diplomatic mission in Pakistan; or

(c) a person who produces a certificate from the Commissioner that his income during the tax year is exempt.

4. Special provisions relating to persons not appearing in active taxpayers’ list. [U/S 100BA]

(a) The collection or deduction of advance income tax, computation of income and tax payable thereon shall be determined in accordance with the

rules in the 10

TH

Schedule.

(b) The provisions of the 10

th

Schedule shall have effect notwithstanding anything to the contrary contained in this Ordinance.

SECTION NATURE OF PAYMENT/ EXEMPTION STATUS OF DEDUCTION / TIME OF

TRANSACTION TAX RATE LIMIT PAYMENT OR COLLECTING DEDUCTION /

DEDUCTION AUTHORITY COLLECTION

1 2 3 4 5 6 7

148

Imports:

Tax to be collected from every

importer of goods on the value of

goods.

FOR

ATL

FOR NON-

ATL

i. Persons importing goods

classified in Part-I of the Twelfth

Schedule

ii. Industrial undertaking importing

remeltable steel (PCT Heading

72.04) and directly reduced iron for

its own use;

1 % of the

import

value

increased

by Custom

• duty,
  sales tax
  and

2 % of the

import

value as

increased

by

customs-

duty, sales

tax and

Minimum for all other

than the following

where

It will be adjustable

in case of import of:

(a) Raw material,

plant,

machinery,

equipment and

Collector of

Customs

At the same time

and manner as the

custom duty is

payable in respect

of the goods

imported