ISLAMABAD: Tightening noose on non-filers, the withholding tax rate on the profit receive over Rs 500,000 investment in National Savings schemes and Defence Saving Certificate has been increased up to 17.5 percent with effective from July 1, 2015.
Officials told Customs Today that the Federal Board of Revenue (FBR) would write a letter to director general of National Savings to deduct the tax at revised rate. They added that DG would also be asked to deduct extra tax from the accounts of non-filers those received profit from the day of effective to receiving of letter after 15 percent tax deduction, an old rate.
According to old law, Over Rs 500,000 investment in National Saving schemes, withholding tax was deducted at the rate of 15 percent on the profit from non-filers and now it has been raised to 17.5 percent.
On the other hand, tax rate for up to Rs 500,000 investment has not been revised and it will be deducted at 10 percent from both filers and non-filers.
However, the exemption from tax deduction and Zakat deduction has been maintained for senior citizens, pensioners and widows those invested in saving schemes in new law.
It is important to mention here that withholding tax exemption on Rs 150,000 investment in Defence Saving Certificates, Special Saving Certificates, Regular Income Certificates, Saving Accounts and Special Saving Accounts was withdrawn by govt in July, 2014.
