Tax Book 2023

Deduction / Payment of Tax Chapter- 23

assessed income or

declared turnover

effect of minimum tax.

Provided that where the taxpayer fails

to provide turnover or the turnover for

the quarter is not known, it shall be

taken to be one-fourth of 100% of the

turnover of the latest tax year for which

a return has been filed.

Advance tax on capital gain from sale of securities [Section 147(5B)]

Adjustable advance tax on capital gain from sale of securities shall be chargeable as under, namely:-

S.

No.

Period Rate of Advance Tax

(1) (2) (3)

1. Where holding period of a security is less
   than six months

2% of the capital gains derived during the

quarter

2. Where holding period of a security is more
   than six months but less than twelve moths

1.5% of the capital gains derived during the

quarter

Provided that such advance tax shall be payable to the Commissioner Inland Revenue within a period

of twenty one days after the close of each quarter.

Credit / refund shall be allowed of advance tax paid under section 147 of the Ordinance.

Advance tax from provincial sales tax registered person [U/S 147 A]

(1) Every provincial sales tax registered person shall be liable to pay adjustable advance tax at

the rate of 3% of the turnover declared before the provincial revenue authority.

(2) The advance tax under sub-section (1) shall be paid monthly at the time when sales tax return

is to be filed with the provincial revenue authority.

(3) Advance tax paid under this section may be taken into account while working out advance tax

payable under section 147.

(4) The provisions of this Ordinance shall apply to any advance tax due under this section as if the

amount due were tax due under an assessment order.

(5) A taxpayer who has paid advance tax under this section for a tax year shall be allowed a

tax credit for that tax in computing the tax due by the taxpayer on the taxable income of the

taxpayer for that year.

( 6 ) A tax credit allowed for advance tax paid under this section shall be applied in accordance with

sub-section (3) of section 4.

(7) A tax credit or part of a tax credit allowed under this section for a tax year that is not able to be

credited under sub-section (3) of section 4 for the year shall be refunded to the taxpayer in

accordance with section 17 0.

(8) This section shall not apply to a person whose name was appearing in the active taxpayers' list

on the thirtieth day of June of the previous tax year.

8. Deduction or collection of tax at source (Section 148 and 158):

Originally tax at source means the collection or deduction of tax at source from where an income is

being generated and it is considered as an advance payment of tax on behalf of the taxpayer. Later

on withholding tax were categorized into two segments

(i) Treating the tax collected as advance tax and

(ii) Considering it as minimum tax liability of the taxpayer in respect of the source against which the

deduction has been made.

Any notification issued under the said sub section and for the time being in force shall continue to

remain in force unless rescinded by the Board through notification in the official gazette.

9. Time of deduction of tax (Section 158)