Withdrawal of section regarding collection of advance tax
July 1, 2021
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Turnover Limit for Minimum Tax section 113

Turnover Limit for Minimum Tax section 113

Turnover Limit for Minimum Tax section 113: Currently, individual and AOP having turn over exceeding Rs. 10 million are required to pay turn over tax under section 113 of ITO, 2001. Now the Finance Bill has proposed to increase the said turn over limit to Rs. 100 million.

Furthermore, presently section 113(2)(c) allows carryforward of minimum tax paid in excess of the normal tax payable for a period of 5 years.

However, there is conflict between tax payer and tax authorities in case if there is no tax payable. Now the said issue will be settled as the Bill proposes to allow such benefit of carryforward even in case no tax is payable.

The rate of turnover tax has also been reduced from 1.5% to 1.25%.

For more information on FBR’s new regulations / circulars/ SROs/ amendments in taxation laws in Pakistan please visit https://www.fbr.gov.pk/

For taxation services please contact us and to read more of our blogs click here.

Waheed Ensari
Waheed Ensari
Waheed focuses on modern techniques in order to management of businesses through finances, learning & development, IT.Its his appetite which draws his attention & energy in helping people (business owners/entrepreneurs) – to get the crystal aspects of the business.

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