Revised WHT on NSS issued
In this connection, the CDNS has issued a notification on Monday as per Tenth Schedule of the Income Tax Ordinance.
According to the notification, the rate of tax imposed on profit on debt for persons not appearing on the Active Taxpayers List (ATL) has been increased to 30 percent from July 1, 2025.
National Saving Schemes: CDNS revises rates of return downwards
The following tax rates; therefore, would remain applicable on NSS under section 151 and prize bonds under section 156 of the Income Tax Ordinance: Section 151 (profit on debt), withholding tax rate would be 15 percent for persons appearing on the ATL and 30 percent tax on persons not appearing on the ATL. Section 156 (prizes and winnings), withholding tax rate shall be 15 percent for persons appearing on the Active Taxpayers List and 30 percent withholding tax on persons not appearing on the ATL.
Copyright Business Recorder, 2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
9 hours ago
- Business Recorder
Mari Energies completes tax compliance on 800% bonus shares
Mari Energies Limited, one of Pakistan's largest E&Ps, has completed the tax compliance process related to its 800% bonus share issuance, in line with directives from the Islamabad High Court. The listed company disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Tuesday. 'Pursuant to the Honourable Islamabad High Court order, Mari Energies Limited has successfully concluded the necessary measures for recovery and deposit of tax relating to the issuance of 800% bonus shares as required under the Income Tax Ordinance, 2001,' the company informed its stakeholders. The company implemented a mechanism to recover and deposit the applicable tax with the Federal Board of Revenue (FBR) by withholding and disposing of a portion of bonus shares from both filer and non-filer shareholders. As part of the tax recovery mechanism, Mari Energies initially retained 10% of the bonus shares for shareholders classified as filers, and 20% for non-filers, it said. 'Their retained shares were disposed of, and the proceeds were deposited with FBR and adjusted against the tax obligations of the relevant shareholders,' read the notice. Meanwhile, in instances where the retained shares were insufficient to satisfy the pertinent tax obligations, the company was authorised by the Court to retain additional shares under lien (10% for filers and 20% for non-filers) and recently authorised to dispose of the shares under lien to the extent of the tax liability. 'Accordingly, lien-marked bonus shares belonging to shareholders who did not fulfil their tax payment obligations have been proportionately disposed of to satisfy their individual tax liabilities,' MARI said. The company informed that a uniform weighted average sale price was applied across all such transactions. It added that these supplementary disposals amounted to approximately 0.38% of the total bonus issue for filers and about 0.76% for non-filers. 'The proceeds from these transactions, representing the recovered tax, are being deposited with the FBR.' Meanwhile, the remaining bonus shares have been credited to the respective shareholders' accounts with the Central Depository Company (CDC), it said. Mari Energies is the country's second-largest producer of natural gas. It is an integrated oil and gas E&P company with an exploration success rate of around 70%, which is significantly higher than the industry averages of approximately 30% nationally and 14% internationally. The company operates Pakistan's largest gas reservoir at Mari Gas Field, Daharki, Sindh.
Business Recorder
10 hours ago
- Business Recorder
Revised WHT on National Saving Schemes issued
ISLAMABAD: In line with the Finance Act 2025, the Central Directorate of National Savings (CDNS) has notified revised withholding tax rates on National Saving Schemes (NSS) from July 1, 2025. In this connection, the CDNS has issued a notification on Monday as per Tenth Schedule of the Income Tax Ordinance. According to the notification, the rate of tax imposed on profit on debt for persons not appearing on the Active Taxpayers List (ATL) has been increased to 30 percent from July 1, 2025. National Saving Schemes: CDNS revises rates of return downwards The following tax rates; therefore, would remain applicable on NSS under section 151 and prize bonds under section 156 of the Income Tax Ordinance: Section 151 (profit on debt), withholding tax rate would be 15 percent for persons appearing on the ATL and 30 percent tax on persons not appearing on the ATL. Section 156 (prizes and winnings), withholding tax rate shall be 15 percent for persons appearing on the Active Taxpayers List and 30 percent withholding tax on persons not appearing on the ATL. Copyright Business Recorder, 2025
Business Recorder
14 hours ago
- Business Recorder
Vehicles, immovable properties: tax rules set purchase limits
LAHORE: Addition of a new Fifteenth Schedule to the Income Tax Ordinance in the Finance Bill has impacted a number of taxable activities, said sources. They said the application for booking, purchase or registration of vehicle under Section 114(1) (a), the threshold motor limitation has been fixed at more than PKR 7 million. The transaction value shall be the invoice value for locally manufactured vehicles, or the import value assessed by customs including all taxes, duties, levies and charges. According to the sources, cars up to PKR 7 million can be purchased by persons, including non-filers, without obtaining a certificate of eligibility for such purchase. This may potentially increase the demand for used cars, and adversely affect the market for brand new cars. So far as registering recording or attesting transfer of any immoveable property under Section restriction 114(1)(b) is concerned, the threshold limitation has been fixed at more than PKR 100 million for commercial immoveable properties and more than PKR 50 million for residential immoveable properties. The transaction value taken shall be the fair market value as defined under Section 2(22AA) of the ITO. Regarding investment in securities, debt securities, units of mutual funds or money market instruments under Section restriction 114(1)(c), the threshold limitation has been fixed at more than PKR 50 million. The transaction value shall be the acquisition cost of securities or debt securities or unit of mutual funds or money market instruments. This will only apply where the investment amount up to PKR 50 million shall be new investment in any financial year excluding reinvestment either by liquidation or similar type of securities and / or reinvestment of returns earned on already held securities. Regarding opening or maintaining of bank account under Section restriction 114C(1)(d)(i), the restriction has only been placed on opening or maintaining of bank accounts except savings accounts. For annual cash withdrawal limit under Section restriction 114C(1)(d)(ii), the threshold has been fixed for equal to or more than PKR 100 million in all bank accounts held by an individual. According to the sources, the thresholds fixed seem to be arbitrary in nature, and will exclude majority of the ineligible persons that the government should have sought to bring within the tax net. Overall, they added, this provision will do only little to broaden the tax net, and will only add a bureaucratic hurdle for wealthy people to obtain eligibility certificates for specific transactions. They said this section is also against the self-assessment scheme of the ITO, and may be subject to litigation on this ground. Copyright Business Recorder, 2025
