[ WITHHOLDING TAX ]
Q.13 On which
schemes, the withholding tax is applicable and under which law?
Ans: With the exception of BSC and PBA, profit
on all NSS is subject to deduction of withholding tax @ 10 in case the
investment exceeds Rs.150,000/- under the Income Tax Law for the time being
in force except Regular Income Certificate wherein no such exemption is
available.
Q.14 If two persons are holding joint
investment, what is the limit of tax exemption what will be the investment
limit either Rs.150, 000/- or Rs.300,000/-?
Ans: For the purpose of withholding tax
deduction, presently Rs.150,000/- shall be deemed to be the limit. As soon
as this limit is exceeded the profit shall become liable to withholding tax
beyond which tax shall apply irrespective of whether the investment is in
single or joint names.
Q.15 Is there any tax applicable on the
prizes won on Prize Bonds, if so, what is the ratio?
Ans: The tax at the rate of 10% of the prize
is deducted at source at the time of payment of prize money in accordance
with the Income Tax Ordinance, 2001 as amended from time to time.
Q.16 I am a non-resident Pakistani and want
to make some investment in National Savings Schemes (NSS), whether, the
profit earned will be exempt from tax or not?
Ans: The investment received through the
branches of Habib Bank Ltd. and United Bank Ltd. operating abroad and profit
paid abroad is exempt from deduction of withholding tax.
General Quires
Investment From Abroad
Prize Bonds &
Payment of Prize Money
Zakat Matters
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