What is filer/non-filer? And how to avoid the 0.4% tax on every transaction?

[suzukialtomehran]

i am talking about withholding tax sir sorry if i am wrong please correct me.

[butwhy]

you're mixing up two kinds of taxes.

I am talking about Section 236P of the following rate sheet:

http://download1.fbr.gov.pk/Docs/2016921139130395WithholdingTaxRatesCard(21.09.2016).pdf

No, he's not mixing anything.

It's the same section, section 236P of ITO 2001, added by finance act 2015 :

What you have posted is a link to the rates mentioned in the First Schedule where the rates are given.

[butwhy]

i am talking about withholding tax sir sorry if i am wrong please correct me.

That SRO was valid for one month only, that one month is now gone. The usual rate mentioned in the First Schedule applies now.

[hassan4772]

No, he's not mixing anything.

It's the same section, section 236P of ITO 2001, added by finance act 2015 :

What you have posted is a link to the rates mentioned in the First Schedule where the rates are given.

Thats what i'm saying. This tax is only deducted from non-filers. @suzukialtomehran mentioned that is 0.3% for filers.

[butwhy]

Yes but there has been no update since 31-08-2016 and the market is operating on the same assumption of relaxation since then. I confirmed from my banker as well on the last working day.

P.S. I too work at a public sector bank.

The banks are doing this on purpose to negotiate down the rate or get rid of it completely because it hurts business.

[hassan4772]

The banks are doing this on purpose to negotiate down the rate or get rid of it completely because it hurts business.

Yes but that's a macro level thing. Not my concern at the moment.

[asjdsm]

Side effects include fever, diarrhea, mild to severe headaches, increased risk of liver failure, reduced renal function, blurred vision and allergic reactions including skin rash.

Filing tax returns means filling out a form with details of your income and wealth.

Yes, but not returned, only adjusted. This is for withholding taxes.

You will have to file a return as your income is above Rs.400,000/annum.

The ultimate consequence is significant reduction in life expectancy.

With this side affects profile I m better without it.

Sent from my Nexus 5 using Tapatalk

[hassan4772]

i am talking about withholding tax sir sorry if i am wrong please correct me.

Thats the other tax. 0.3% for filer and 0.6% for non filer. It's for transactions involving cash.

[suzukialtomehran]

Thats what i'm saying. This tax is only deducted from non-filers. @suzukialtomehran mentioned that is 0.3% for filers.

it is 0.3% for fillers but Bank charge 0.6% from every one unless customers is really a big fish with a big file return and a hefty bank ac

[hassan4772]

it is 0.3% for fillers but Bank charge 0.6% from every one unless customers is really a big fish with a big file return and a hefty bank ac

Thats strange. My understanding is that it isn't really the banks' discretion. Their systems are integrated with NADRA, FBR,SBP & other relevant authorities and accounts are tagged accordingly.

[butwhy]

Thats the other tax. 0.3% for filer and 0.6% for non filer. It's for transactions involving cash.

There are two sections. 231A is for cash withdrawals, where 0.3% is for filers and 0.6% for non-filers.

Then there is 236P under which 0.6% is to be deducted from non-filers on non-cash transactions. There is no mention of filers, so I guess no tax on filers.

Filers only pay 0.3% advance tax on any cash withdrawals above 50,000 per day (50,000 being the total of banking transactions through all bank accounts in the day).

[hassan4772]

There are two sections. 231A is for cash withdrawals, where 0.3% is for filers and 0.6% for non-filers.

Then there is 236P under which 0.6% is to be deducted from non-filers on non-cash transactions. There is no mention of filers, so I guess no tax on filers.

Filers only pay 0.3% advance tax on any amounts above 50,000 per day (50,000 being the total of banking transactions through all bank accounts in the day).

...if the transaction involves cash. if there is no cash involved, filers do not have to pay any taxes.

[butwhy]

...if the transaction involves cash. if there is no cash involved, filers do not have to pay any taxes.

yes, forgot to mention that...edited.

[suzukialtomehran]

Thats strange. My understanding is that it isn't really the banks' discretion. Their systems are integrated with NADRA, FBR,SBP & other relevant authorities and accounts are tagged accordingly.

i know it is integrated with fbr etc but for that one should tell the bank he is a filler and WHT should be deducted as per filler ratio, other than that normal rate will be applied on his cash transactions.

[786junaidmajid]

03006540017 contacts for active tax payer i am income tax practitioner

[nabeel_javaid]

hahaha cool reply bro.

[nabeel_javaid]

kindly give me some guidance too. I am a Government servant (means my income will always be known to Government) and income tax is already being deducted from my salary . Is that means my name would have been included in to Active tax payer's list or for that i will still have to file a tax return. Secondly , for me particularly ,is being a filer a good thing or i should avoid it to avoid complications?

[abid110]

@nabeel_javaid
your Tax is already deducted and paid by the Govt in FBR on your own NIC number. this means you are a tax payer but NOT a Tax filer. all privileges are for Tax FIlers. for this, you need to get yourself registered on FBR's website first through your NIC and mobile number and then File your Tax return online along with Wealth statement. this is a very easy procedure and you can do it yourself too provided you understand things. otherwise contact a Tax lawyer/practitioner who will do it for you at a fee.

definitely yes its a good thing to file return as you will enjoy so much benefit.

[nabeel_javaid]

OK sir thank u very much.

[pwuser153948684238]

Uploading... . If anyone wants to become a filer, feel free to contact me. I am working as a consultant