Huge WHT is collected in the current year on registration or tokens of vehicles. Can anyone please give the answer of my following questions.
1. Can this WHT be adjusted against I.Tax payable by a person?
2. Under which SRO or section of ITO,2001 this WHT is levied ?
3. What will be the procedure for adjusting this WHT?
This WHT is very problematic because thousands of rupees are collected on account of WHT.
Regards,
Awais Aftab
Dear Awais,
Followings are the respective responses to your queries;
1. WHT on newly purchased Vehicles as well as yearly taxation on Vehicles of each kind is adjustable against the final tax liablity by a person.
2. Section 234 of Income Tax Ordinance 2001 specifically indicates the nature of taxation deducted/collected on these vehicles as to the final tax or adjustable tax.
Detail of section 234 may provide sufficient conversancy with regards to those ambiguities, With which you have been confronted.
3. While filling your Tax return, you may reduce your tax liablity by the respective amount already paid on account of taxation under section 234, subject to specified conditions.
However, if you are deducting authority, then a form,"Declaration by Salaried person", which i probably sent you, may be signed and be kept for the period of five years, on the basis of which , a rebate in tax liablity may be availed directly ,without filing Tax Return.
All queries will be appreciated.
Best Regards,
Faisal
Dear Faisal Bhayee,
Thnaks a lot for taking your precious time to answer my questions in detail. Yes, you have sent me the said declearation.
Best regards,
Awais Aftab