KARACHI: Federal Board of Revenue (FBR), through draft amendments into the Income Tax Rule, 2002, has decided to allow the National Clearing Company of Pakistan Limited (NCCPL) to verify the tax liabilities.
The FBR has proposed the law that will enable the NCCPL to ensure compute refunds of members and investors of Pakistan Stock Exchange (PSX) and Pakistan Mercantile Exchange (PMEX).
Under the draft, NCCPL will compute the net capital gains, tax liability or refund for each investor to be collected from or refunded to the asset management companies or PMEX.
The amendments will authorise the FBR to directly obtain information from the NCCPL regarding member, broker and investors of the PSX as well as members of PMEX and unit holders in mutual funds.
As per the new amendments, a PSX or PMEX investor has to submit affidavit of true declaration regarding securities’ transaction conducted during the tax period as per the ledger statement and Central Depository Company’s statements.
The amendments will be implemented after seven days in consultation with the stakeholders and allow the NCCPL to regulate the PMEX members. The FBR said if cumulative yearly refund per investor is below Rs1,000, then it will be carried forward for adjustment in the next month. “However, any refunds, irrespective of the amount, shall be refunded at the year end,” it added.
