LAHORE: The Federal Board of Revenue (FBR) has sought all the Association of Persons (AOPs) or a company to pay their advance income tax by 25th of September 2021. According to a notification, all the AOPs or companies are bound to pay advance income tax under section 147 of the Income Tax Ordinance 2001 for the tax year 2021.

It further added that the advance tax is payable by the AOPs or a company to their respective commissioners Inland Revenue on or before the 25th day of September in respect of the September quarter, on or before the 25th day of December in respect of the December quarter, on or before the 25th of March in respect of the March quarter and on or before the 15th day of June in respect of the June quarter.

All the taxpayers have been advised to consult their lawyers and make advance income tax payment timely to save themselves from levy of default surcharge under section 205 of the Income Tax Ordinance 2001. In case of non-payment of the advance tax, recovery proceedings would be initiated as per law, it added.

So far as the computation of the amount of the advance tax due for a quarter is concerned, the taxpayer's turnover for a quarter and the tax assessed for the latest tax year would be divided by the taxpayer's turnover for the latest tax year and subtracted from the tax paid in the quarter for which a tax credit is allowed under section 168. The said notification has been dispatched to all the AOPs or companies by the regional offices of the Board.

Copyright Business Recorder, 2021