Super Tax for TY15: no credit of brought forward losses to be allowed

The Super Tax would be applicable to income of individuals, association of persons (AoPs) and companies for Tax Year 2015 without giving effect/credit of brought forward losses, official sources told Business Recorder here on Friday. According to sources, no credit of brought forward losses shall be allowed for computing Super Tax for the Tax Year 2015 applicable on income of individuals, AoPs and companies.
The preceding tax years assessed losses have been carried forward and set off against the income of the succeeding tax years under the Income Tax Ordinance, 2001. However, Super Tax would be applicable this year''s income without giving effect of brought forward losses. The individuals, association of persons (AoPs) and companies earning income above Rs 500 million would pay super tax along with the income tax return for tax year 2015. The draft of the new income tax return form and wealth statement for individuals and AoPs has already specified payment of Super Tax. The imposition of the Super Tax would generate Rs 24 billion extra revenue during 2015-16, official added.
According to the commentary on Finance Act 2015 issued by Naveed Zafar Ashfaq Jaffery & Co. Chartered Accountants, Finance Act 2015 proposes to charge additional Income Tax, called super tax, for every person whose income exceeds Rs 500 million. The super tax will be charged for the rehabilitation of temporarily displaced persons for tax year 2015. The tax would be charged at 4 percent for Banking Companies and at 3 percent for others.
The income would be the sum of following: Profit on debt, dividend, capital gains, brokerage and commission; normal taxable income; imputable income; and income computed under Fourth, Fifth, Seventh and Eighth Schedule for specialized entities. The government revenues are expected to increase due to additional taxes. The government has introduced Super Tax on rich individuals, association of persons (AoPs) and companies earning income above Rs 500 million in tax year 2015 at rate of 4 percent of income of banking companies and 3 percent on other categories for rehabilitation of temporarily displaced persons through Finance Act.