As indicated by Federal Board of Revenue (FBR), Inter-bank funds exchanges or Pakistan Real-time Inter-bank Settlement Mechanism (PRISM) exchanges will now be charged another withholding tax under section 236P of the Income Tax Ordinance 2001.
Whenever asked, Shahid Hussain Asad, Senior Member FBR (Inland Revenue Policy) and Official Spokesperson FBR, said that all PRISM exchanges led at banks are currently subjected to withholding tax. He said the tax will go under Section 236P of the Income Tax Ordinance 2001. The government has as of now gone the alteration through the Income Tax Amendment Ordinance 2015.
The transactions will be exhausted at a generally reduced rate of 0.3 percent. The sum was already expressed to be 0.6 percent in July however the trade group held a dissent which prompted this decrease. The protesting group has been given an augmentation of 1 week (till 7th November) to document their salary government forms under the new statute.
The section 236P has been as of late presented in the Financial Act 2015 which requires all banking organizations to deduct withholding tax from non-filers at the season of sale or any monetary exchange. The duty additionally applies to “demand drafts, pay orders, special deposit receipts, cash deposit receipts, short term deposit receipts, call deposit receipts, rupee travelers cheques or some other instruments of such nature”.
The tax is additionally relevant at “the time of transfer of any sum through cheques, inter-bank or intra bank transfers through cheques, payments through mobile phones ,telegraphic transfers, online transfers, mail transfers, direct charges, payments through web, (EasyPaisa and so on.), account to account cash transfer, third party account to account money transfer, real time account to account money transfer, real time third party account to account money transfer, automated teller machine (ATM) transfers, or some other method of electronic or paper based assets transfer.”