Scope of persons obliged to act as withholding tax agents under section 153 of the Income Tax Ordinance, 2001 extended to builders and developers [Section 153(7)(i)]

Withholding tax agents under section 153: Prior to the passage of the Finance Act, 2018 builders i.e. persons deriving income from the business of construction and sale of residential, commercial or other buildings and developers i.e. persons deriving income from the business of development and sale of residential, commercial or other plots were not obliged to act as WHT agents u/s 153 of the Income Tax Ordinance, 2001 if their turnover during any given tax year was less than Rs. 50 million.

The scope of persons obliged to act as WHT agents under section 153 of the Income Tax Ordinance, 2001 has now been enlarged through the Finance Act, 2018 and all builders and developers regardless of whether or not their turnover during a tax year exceeds Rs. 50 Million shall now be obliged to act as withholding tax agents under section 153 of the Income Tax Ordinance, 2001.

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