Tax on Capital Gains on disposal of Securities
Rate of Tax on Capital Gains on disposal of Securities
| S# | Description | Rate | ||||||
| 1 | Where the holding period does not exceed one year | 15% | ||||||
| 2 | Where the holding period exceeds one year but does not exceed two years | 12.5% | ||||||
| 3 | Where the holding period exceeds two years but does not exceed three years | 10% | ||||||
| 4 | Where the holding period exceeds three years but does not exceed four years | 7.5% | ||||||
| 5 | Where the holding period exceeds four years but does not exceed five years | 5% | ||||||
| 6 | Where the holding period exceeds five years but does not exceed six years | 2.5% | ||||||
| 7 | Where the holding period exceeds six years | 0% | ||||||
| 8 | Future Commodity contracts entered into by members of Pakistan Mercantile Exchange | 5% | ||||||
Provided further that a mutual fund or a collective investment scheme or a REIT scheme shall deduct Capital Gains Tax at the rates as specified below, on redemption of securities as prescribed namely:—
Provided further that in case of a stock fund if dividend receipts of the fund are less than capital gains, the rate of tax deduction shall be 12.5%: Provided further that no capital gains tax shall be deducted, ifthe holding period of the security is more than six years. |
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Tax on Electricity Consumption FBR
Tax on Electricity Consumption by FBR (Section 235, First Schedule, Part-IV, Division-IV)
| Taxable Income | Rate of Tax |
| Where the amount does not exceed Rs. 30,000 | Rs.3,000 |
| Where the amount exceeds Rs. 30,000 but does not exceed Rs.50,000 | Rs.5,000 |
| Where the amount exceeds Rs. 50,000 but does not exceed Rs.100,000 | Rs.10,000 |
| Retailers and service providers as notified by the Board in theincome tax general order | Up to Rs.200,000 |
| To be deducted from professionals (accountants, lawyers, doctors, dentists, health professionals, engineers, architects, IT, tutors, trainers and other persons engaged in provision of services) not appearing on ATL and
operating from residential premises having domestic electric connections |
|
If You need any help Contact Best Tax Consultant in Islamabad
221(2) (Notice for rectification of mistake in assessment order)
221(2) (Notice for rectification of mistake in assessment order) received from fbr
your income tax return for the year under consideration has been examined and it has been found that you have claimed refund adjustment for the prior year(s) amounting to Rs.290614/- against the income tax payable for the subject year. The said adjustment is not admissible as the same has not been sanctioned in your favor through order under section 170(4) of the income Tax Ordinance, 2001. This is a mistake apparent from record and liable to be rectified under section 221 of the Income Tax ordinance, 2001. You are therefore, afforded an opportunity to explain your position alongwith documentary evidence on the due date mentioned above. You are called upon a show cause as to why your case for subject year may not be rectified.
Why you received 221(2) (Notice for rectification of mistake in assessment order) ?
After the last year tax retrun submission you have not filed refund application and second you have claimed last years tax and adjust current year.
What should i do now?
Simply reply the notice with last documents on the basis of last years tax refund claimed.Your reply should be proper and understandable.
If no compliance made of 221(2) (Notice for rectification of mistake in assessment order)?
In case of non-compliance or reply found unsatisfactory, it will be established that you have no plausible explanation
and assessment will be rectified accordingly.
If need any help on 221(2) (Notice for rectification of mistake in assessment order) feel free to contact us at Astro Associates tax consultant
Tax Rates for AOPs and Non-salaried persons
Tax Rates for AOPs and Non-salaried persons
| S# | Taxable Income | Rate of Tax |
| 1 | Up to Rs 600,000 | 0% |
| 2 | Rs 600,001 Rs 800,000 | 5% of the amount exceeding Rs 600,000 |
| 3 | Rs 800,001 Rs 1,200,000 | Rs 10,000 + 12.5% of the amount exceeding Rs 800,000 |
| 4 | Rs 1,200,001 Rs 2,400,000 | Rs 60,000 + 17.5% of the amount exceeding Rs 1,200,000 |
| 5 | Rs 2,400,001 Rs 3,000,000 | Rs 270,000 + 22.5% of amount exceeding Rs 2,400,000 |
| 6 | Rs 3,000,001 Rs 4,000,000 | Rs 405,000 + 27.5% of the amount exceeding Rs3,000,000 |
| 7 | Rs 4,000,001 Rs 6,000,000 | Rs 680,000 + 32.5% of the amount exceeding Rs4,000,000 |
| 8 | More than Rs 6,000,000 | Rs 1,330,000 + 35% of the amount exceeding Rs6,000,000 |
If you want to file your AOP tax retruns.Contact Us
Notice under Rule 44(4) of the Income Tax Rules 2002 What you do?
Notice under Rule 44(4) of the Income Tax Rules 2002
Notice under Rule 44(4) of the Income Tax Rules 2002 you should reply within due date with required details.They Sent you on the basis of said year after tax filing.FBR saw your tax retrun where you have declared purchases etc.
What if you no reply
They will send you another notice where they will mention amount of purchase salaries all exepnse.After given three opportunities they will finalize tax liability.
What if you cannot reply Notice under Rule 44(4) of the Income Tax Rules 2002 then you can contact us
How to check filer status in fbr:Very Simple Way
There are three ways to check your filer status
SMS Verification:
Go to write message type ATL space ID Card Number without dashes and send to 9966 then you will get instant mesesage of your ATL staus.
Online Verification:
Go to e.fbr click on active tax payers list the you will find another screen where select the parameter type CNIC and enter your cnic number without dash fill image captcha then you will find your active status
Active Taxpayers List (ATL):
Third way you can download ATL list in detalied form E.FBR site.Keep in mind this list will be update on every monday.
If need any help How to check filer status in fbr contact us Astro Associates Islamabad best tax consultancy services in Islamabad & Rawalpindi
SECTION 7E FBR TAX ON DEEMED INCOME
SECTION 7E FBR TAX ON DEEMED INCOME
For tax year 2022 and beyond, income specified in this section shall be subject to taxation at the rates outlined in Division VIIIC of Part-I of the First Schedule.”
A resident individual will be considered to have earned taxable income under this section equal to five percent of the fair market value of capital assets located in Pakistan, excluding the following, on the last day of the tax year
- Self-using one capital asset;
- owned business premises for business person is a Filer at any time during the year;
- owned agriculture land for agriculture activity (excludes farmhouses and land annexed to them);
- Capital assets allotted to certain individuals such as Shaheeds or dependents of Shaheeds belonging to Pakistan Armed Forces, war wounded persons serving Pakistan Armed Forces, Federal and Provincial Government and more;
- Income from any property which is chargeable to tax under the Ordinance and tax on the same has been paid in same period
- Same year purchasing capital asset on which advance tax u/s 236K has been paid
- Assets below 25 Million
- Constructor,builders and developers those are registered with Directorate General of Designated Non-Financial Businesses and Professions of Board (DNFBP)
Above are the detais of SECTION 7E FBR
176(1) (Notice to obtain information or evidence) What should do?
176(1) (Notice to obtain information or evidence) In this notice Please refer to the subject cited above.During the Desk Audit it has been noticed that you have adjusted refund claim of previous years against tax liability of tax year 2020.You are requested to provide proof/documentary evidence that tax was deposited in government exchequer against which you have claimed adjustment in tax year 2020.
In case of failure to furnish the requisite proof/documentary evidence the same shall be disallowed and subsequently recovered under the law.
Reason of Receiving 176(1) (Notice to obtain information or evidence)
If you have adjusted last year tax refund to next year they will ask you proof of taxes which you paid that you are claiming.
What should you do ?
If you received 176(1) (Notice to obtain information or evidence) then yoou should reply within due date with proper evidence.
Non Compliance of Notice
They will give you three opportunities every fifteen days non-Compliance of 176(1) (Notice to obtain information or evidence) may face demand notice and after tax recovery
if you need any help for the compliance of 176(1) (Notice to obtain information or evidence) feel free to contact us
122(9) (Notice to amend assessment) from FBR
122(9) (Notice to amend assessment) from FBR
122(9) (Notice to amend assessment) from FBR where you have mentiond Proceedings are being initiated against you on account of definite information u/s 122(5) received from Directorate of Intelligence & Investigation regarding purchase of property amounting to Rs.13,010,000/- during the tax year 2022
You have declared nil income whereas you made investment to purchase aforementioned property amounting to Rs. 13,010,000/- and have paid advance tax thereon u/s 236k amounting to Rs.260,200/- which you have failed to declare in your wealth statement for the tax year under consideration. The income declared does not commensurate with such a huge investment.
You are therefore given the opportunity to show cause u/s 122(9) read with section 122(5) as why the investment made to purchase the property amounting to Rs. 13,010,000/- may not be considered concealed income and may not be added in your total income under section 111(1)(b) of the Income Tax Ordinance, being income from “other sources”
This will also render you liable to the penalty of 100% of the amount of tax sought to be evaded u/s 182 of the Ordinance.
You are required to provide the following documents:
- All bank account statements from 01.07.2021 to 30.06.2022.
- Sale/ purchase agreement of the property purchased
- Source of investment made to purchase the property
- Any Other documents relevant to your case
The reply substantiated by the documentary evidence should reach the office of the undersigned by the due date. In case of failure the same shall be considered as concealed income under section 111(1) (b) of the ordinance 2001 and the assessment u/s 120 will be amended accordingly u/s 122(1).
Reason for received 122(9) (Notice to amend assessment) from FBR
During the filing of tax return either you missed to mention the taxes in 236k section or you missed to add this
property.
When you will receive 122(9) (Notice to amend assessment) from FBR
Before the finalizing of assessment the officer will give you opportunity to provide written proper response.
What you do if you received 122(9) (Notice to amend assessment) from FBR
When you received 122(9) (Notice to amend assessment) from FBR then within due date you should proper reply this notice with evidence in attachment portion. If you cannot reply hire a tax advisor who will give proper reply.
If you not reply received 122(9) (Notice to amend assessment) from FBR within due date then what will happen ?
Fbr will give you three opportunity of clear 15 days should be offer to the assesses before making assessment.
What If no compliance Made of received 122(9) (Notice to amend assessment) from FBR?
If no reply on time after given three opportunities they will send you demand notice.You may file appeal within thirty days after the reciving of demand notice
Contact us for replying of 122(9) (Notice to amend assessment)
Collection of Duties/Taxes on 23rd, 30th & 31″ December, 2023
FBR field formations, the State Bank of Pakistan, and National Bank will remain open until 10 pm on December 31st