In the recent budget, so called friendly especially investor friendly budget, had introduced a drastic new concept. That shows that government has no understanding of Taxation.
As per Income Tax Ordinance 2001, section (2), Inocme tax is leviable only on the income. If a person has paid all his taxes.
Then why his saving should again be taxed at the time of withdrawl from bank?
What the forum thinks about it.
Whether he should be taxed again or not? Further Whether taxing the saving is lawfull (Where even ITO 2001 does not allows that)?
Thanks
Dear...
To the extent I understood your question, I think you are contaminating the concept of income chargeable under Normal Tax Regime and income chargeable under Presumptive Tax Regime (PTR). Tax deducted on withdrawals from bank is adjustable against your final tax liability; it means that your income is not double taxed. However, the concept of PTR is different, it is also termed as blind tax....
well iahmad ! i got ur point that the u wanna comment about the dedution of tax when amount is withdrawn from the bank.
let me tell u that this kind of nominal tax in levied in many other countries as well. the main reason to collect this tax is to discourage the withdrawls from the banks on regular basis.
tehre will b 2 benefits one is ROBERY ceses could b reduced n other one is more CAPITAL is available for banks to invest,n ultimatelly bosting the pak economy.
so,in some sense it,s better to hav these kind of taxes on the bank withdrawls.Allah Hafiz
whenever peaple agree with me i think i must be wrong.
Aoa,
but as a businessman,it is so painful,that urs every transcation above Rs.25,000 should be taxed,
it is discouraging,due to now again people are avoiding transcation from banks,
i am also businessman,i see now people settle their obligation out side the banks,it is risky,but people are doing that,
regards
ammar
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Ammar</i>
<br />Aoa,
but as a businessman,it is so painful,that urs every transcation above Rs.25,000 should be taxed,
it is discouraging,due to now again people are avoiding transcation from banks,
i am also businessman,i see now people settle their obligation out side the banks,it is risky,but people are doing that,
regards
ammar
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One way is to split the required amount into number of individual amounts not exceeding 25,000. however, care must be taken of the cost of cheque paper and the amount of tax levied. means CBA must b drawn....
ICAPians the unparalleled.....
Aoa,
off course,cost of cheques should be beared in mind,but in this way,we imputed wok load on bank staff,they have to post a lot of cheques in this way,and it reduce efficiency of working of bank,
regards
Ammar
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Ammar</i>
<br />Aoa,
off course,cost of cheques should be beared in mind,but in this way,we imputed wok load on bank staff,they have to post a lot of cheques in this way,and it reduce efficiency of working of bank,
regards
Ammar
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If u r so consciouse about the efficiency of bank staff then u must not hesitate to pay tax to Govt. also.
ICAPians, the unparalleled.....
right but butt butt although its adjusted against final tax but whats the justification for charging tax twice...say once on ur income and again whatever you get from ur income e.g withhloding tax, Cell cards, phone, Bank withdrawal, n sooooo much.....
Smile ! GOD loves you.....
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<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by zee_cma</i>
<br />right but butt butt although its adjusted against final tax but whats the justification for charging tax twice...say once on ur income and again whatever you get from ur income e.g withhloding tax, Cell cards, phone, Bank withdrawal, n sooooo much.....
Smile ! GOD loves you.....
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Hello Mr.CMA from ICMAP...
Conceptual problem seems...
As you said that it is adjusted against your Final Tax Liability, then it means that the benefit of tax, which has already been withheld/collected at source, is available to the taxpayer by reducing the Final Tax Liability. You can't say it is double charged. However, the concept of PTR is different.
ICAPians, the unparalleled..