Deduction / Payment of Tax Chapter- 23
- Recovery of tax from the person from whom the tax was not collected or deducted (Section
162):
Where a person fails to collect or deduct tax from a payment, the Commissioner Inland Revenue may
pass an order to that effect and recover the amount not collected or deducted from the person from
whom the tax should have been collected or to whom the payment was made.
Such recovery of tax does not absolve the person who failed to deduct tax from any other legal action
in relation to the failure, or from a charge of default surcharge or the disallowance of a deduction for
the expense to which the failure relates.- Recovery of advance payment or deduction of tax at source (Section 163)
The provision of this Ordinance shall apply to any amount required to be paid to the Commissioner
Inland Revenue as advance tax or tax deducted at source as if it were tax due under an assessment
order.- Certificate of collection or deduction of tax (Section 164)
Every person collecting tax or deducting tax from a payment shall furnish to the person from whom
the tax has been collected or deducted, copies of the Computerized Payment Receipt (CPR) or any
other equivalent document a certificate setting out the amount of tax collected or deducted.Provided that in case of persons or class of persons notified as SWAPS agent, SWAPS Payment
Receipt (SPR) shall be replaced with Computerized Payment Receipt (CPR).
A person required to furnish a return of taxable income for a tax year shall attach to the return copies
of the Computerized Payment Receipt (CPR) or SWAPS Payment Receipt (SPR) on the basis of
which a certificate is provided to the person in respect of tax collected or deducted in that year.17 A. Payment of tax collected or deducted by SWAPS agents (Section 164A)
Subject to the Ordinance, the Board may, by notification in the official gazette, notify any person or
class of persons required to deduct or collect tax under the Ordinance to integrate with Synchronized
Withholding Administration and Payment System and to act as SWAPS agent within the time and in
the manner as may be prescribed.The tax collected or purported to be collected or deducted or purported to be deducted under the
Ordinance by a notified SWAPS agent and credited to the Commissioner through digital mode, shall
be treated to have been paid under section 160 of the Ordinance.
Where tax has been paid by a notified SWAPS agent in accordance with sub-section (2) of this
section, copy or number of SWAPS Payment Receipt (SPR) shall replace copy or number of
Computerized Payment Receipts (CPR) for the purposes of the Ordinance.
Any notified SWAPS agent shall not be eligible for tax credit under Part X of Chapter III of the
Ordinance and exemption under any of the provisions of the Ordinance if notified SWAPS agent
fails to integrate with Board.All persons from whom the tax has been collected or deducted by the notified SWAPS agents shall
be eligible for credit of tax withheld against SPR issued by SWAPS Agent.
All other provisions of the Ordinance, not specifically dealt with in this section, shall, mutatis
mutandis, apply to the notified SWAPS agents.
Certificate of collection or deduction of tax [Rule 42] As required u/s 164(1), any person responsible for collecting tax under various sections of the
Ordinance (except in the case of salary) or deducting tax under the 6th Schedule to the
Ordinance, shall issue a certificate to the person from whom tax has been collected or deducted, in the
form as set out in Part VII of the Second Schedule to Income Tax Rules, 2002, within 15 days
after the end of the financial year or discontinuation of business etc.-