To facilitate taxpayers specifically withholding agents under the Income Tax Ordinance, 2001, the Federal Board of Revenue (FBR) has issued a comprehensive guide wherein exemptions from withholding taxes under Part-II, III & IV of Second Schedule to the Income Tax Ordinance, 2001 have been categorised and arranged on the basis of each withholding tax section.
The FBR has placed a document called, 'exemption under 2nd Schedule Part-II, III and IV of Income Tax Ordinance, 2001 categorised and arranged on each Withholding Section Basis" on its official website to facilitate taxpayers. Sources told Business Recorder here on Saturday that this move on the part of FBR shall ultimately be helpful for proper compliance of withholding taxes provisions contained in the Income Tax Ordinance, 2001. This guide shall greatly facilitate the withholding agents' community of the Pakistan to avoid unnecessary litigation and timely compliance of withholding agent's obligations.
Experts further stated that under the Income Tax Ordinance, 2001 various exemptions have been provided under Part-II, III and IV of Second Schedule to the Income Tax Ordinance, 2001. Such as part II of the Second Schedule covers Incomes or classes of income, or persons or classes of persons, shall be liable to tax at such rates which are less than the rates specified in the First Schedule, Part III of the Second Schedule covers the situation where Income, or classes of income, or person or classes of person, shall be allowed reduction in tax liability to the extent and subject to such conditions as are specified in the part III, while part IV of the Second Schedule states Income, or classes of income, or persons or classes of persons, shall be exempt from the operation of such provisions of this Ordinance, subject to such conditions and to the extent, as are specified in the part IV of the Schedule.
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