ISLAMABAD: The Federal Board of Revenue (FBR) has exempted income tax on donations/payments made to the Prime Minister’s COVID-19 Pandemic Relief Fund, 2020.
In this regard, the FBR issued a notification, here on Friday. According to the notification, the FBR will not deduct withholding tax at the time of transfer of any sum to the Prime Minister’s COVID-19 Pandemic Relief Fund 2020.
The provisions of Section 151 (profit on debt); 231A (cash withdrawal from a bank); 231AA (advance tax on transactions in bank) and 236P (advance tax on banking transactions otherwise than through cash) shall not apply to the Prime Minister’s COVID-19 Pandemic Relief Fund-2020.
Following is the text of the SRO 300(1)12020 issued by the FBR here on Friday.
In exercise of powers conferred by sub-section (2) of Section 53 of the Income Tax Ordinance, 2001, the federal government is pleased to direct that the following further amendments shall be made in the Second Schedule to the said ordinance.
In the aforesaid schedule, (i) in Part 1, (a) in clause (61), after sub-clause (vi), the following new sub-clause shall be added, namely (vii) The Prime Minister’s COVID-19 Pandemic Relief Fund-2020; and (b) in clause (66), after sub-clause (xviii), the following new sub-clause shall be added, namely: (xix) The Prime Minister’s COVID-19 Pandemic Relief Fund-2020, and (ii) in Part IV, (a) in clause (11A), after sub-clause (xxxiv), the following new sub-clause shall be added, namely- (xxxv) The Prime Minister’s COVID-19 Pandemic Relief Fund-2020; (b) after clause (115), the following new clauses shall be added, namely, (116) The provisions of Section 151, 231A, 231AA and 236P shall not apply to The Prime Minister’s COVID-19 Pandemic Relief Fund-2020, (117) The provisions of Section 236P shall not apply at the time of transfer of any sum to The Prime Minister’s COVID-19 Pandemic Relief Fund2020.
