Tax on savings schemes profit hiked to 15pc for filers
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ISLAMABAD: The Federal Board of Revenue (FBR) on Saturday announced that the rate of withholding tax on profit of national savings schemes (NSS) will be 15 per cent effective from July 1, 2021.
According to a circular, the rate will be available only to those people who are on the Active Taxpayers List (ATL). The rate will be 30pc for those who are not on the ATL.
A tax official said that currently the withholding tax rate was 10pc on profits of NSS while 5pc tax will have to be deposited at the time of depositing income tax returns. Under the amendments introduced in the Income Tax Ordinance through the Finance Act 2021 now it will be 15pc and there will be no requirement at the time of filing of tax returns.
The government offers higher profit rates on savings schemes including Defence Savings Certificate, Behbood Savings Certificates, Regular Income Certificates, Special Savings Certificate, Pensioners Benefit Accounts, Shuhada Family Welfare Account, and Short Term Savings Certificates.
Published in Dawn, July 4th, 2021
