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+--- Thread: 0.2% TAX ON CASH WITHDRAWAL FROM A BANK (/showthread.php?tid=4351)
0.2% TAX ON CASH WITHDRAWAL FROM A BANK - M Javaid - 03-24-2007
ASALAM O ALYKUM
Either 0.2% TAX ON CASH WITHDRAWAL FROM A BANK is on all types of accounts (saving,pls,current)or a particular type of account
If particular type so please mention the type
- zurpk - 03-25-2007
Mr. Javed i think that this is aplicable on all types of bank accounts.
Zia ur Rahman
- msc286 - 03-27-2007
The tax on the cash withdrawals exceeding Rs. 25,000 per day is applicable on all accounts irrespective of the nature. I would like here that this tax can be claimed back in your annual tax return.
Mahmood Chaudhry
ACCA, ACA
- kamranACA - 04-05-2007
Dear,
Mr. Mahmood has called our attention to a very important aspect of tax on withdrawls.
There is common feeling that this tax is merely a burden. The economy where people are already doing so much in balck money leading to money laundring issues, such taxes on bank dealings will further discourage the public to bring their businesses within the boundries of documented economy.
In my view, (as also substantiated by Mahmodd Sahib), this tax can never be supposed as a burden on actual tax payers. This is just in the nature of advance tax as we also pay income tax on utility bills and mobile cards etc. This must be adjusted by every one while filing the income tax return for any tax year.
However, in certain cases, this tax could be deemed as burden. Like the guys whose incomes are below the taxable limits and who dont have to file the returns.
In pakistan, it happens. Mobile phones are now owned by every one. So many of them are earning below the taxable limits. But all such guys have to pay the tax on the purchase of mobile cards. This happens in so many cases. Therefore, in my view the public should be educated enough to get their refunds from the tax authorities, if their incomes are below the tax limits or if tax payable by them is lesser than the tax already paid by them or collected from them. For individuals very fewer taxes fall in presumptive or may be no tax is in presumptive at the moment.
Therefore, all taxes paid by individuals or collected from them should be adjusted by them against their total payable tax while filing the return.
I recommend that every one should try to file a return. This will take some time but will also make their legal worth and by means of such return one can get the refund from the tax department in respect of any unjustified collection made from him.
Regards,
Kamran
- zurpk - 04-05-2007
AoA
Thanks to all for giving us very nice informations. However, i have some confusions about the above discussion which i want to share with you. When a company or indivisual deduct tax at source then he is liable to issue a certificate for the deduction of tax to payee at the end of the year.
Similarly, banks also deduct tax at source at the rate of 0.2% on the cash withdrawal exceeding to Rs. 25,000.00. so in this case, can we ask a bank to issue us tax deduction certificate at the end of the year? we have also an evidence of bank statement in which tax deducted at source is shown. However, income tax authorities want challan copy or tax deduction certificate.
Thanks.
Zia ur Rahman
- msc286 - 04-06-2007
Banks actually issue the certificate if requested. I have done for my many clients. The banks not only give you the certificate regarding deduction of WHT from Bank Profits but also regarding the WHT deducted on Cash withdrawals. Tax authorities do accept the certificate issued by the Banks and do not insist upon the challan in such cases.
I fully agree with Mr. Kamran that everyone should file the return and claim what is lawfully theirs. I mean the WHT deducted on phone, banks etc.
Mahmood Chaudhry
ACCA, ACA