ISLAMABAD (July 28 2006): A new monthly statement has been chalked out for the withholding agents for collection or deduction of withholding tax. The Central Board of Revenue (CBR) on Thursday issued draft of monthly statement for collection or deduction of withholding tax. It has proposed amendment to the Income Tax Rules, 2002, through an SRO.562(I)/2006 issued here on Thursday.
In order to improve withholding taxes regime, the government has made it mandatory for withholding agents to file a monthly return. Therefore, a new monthly statement has been proposed for these agents.
The CBR has asked all stakeholders to give comments on the proposed monthly statement within seven days of the publication of the draft for incorporating viable suggestions before its publication.
The statement for collection of withholding tax under section 165 of the Income Tax Ordinance, 2001, has been prescribed for obtaining details of the transactions, including particulars of the withholding agents.
The information required under the new form included the name, address and the National Tax Number (NTN) of the person from whom tax was collected or deducted; nature of payment; section under which tax collected or deducted; value/amount on which tax collectible or deductible during the year; amount of tax collected or deducted during the month; rate of tax collected or deducted (percentage); amount of tax deposited and date of deposit.
According to another SRO.561(I)/2006, the Board has amended the Income Tax Rules, 2002, to prescribe a new income tax return form (total income) for the companies.
The resident companies would submit particulars of their directors under the new form. The companies will have to submit the details about the 'adjustment of minimum tax' paid during past years.