The Federal Board of Revenue (FBR) on Saturday increased to 15 percent withholding tax on profit of national savings schemes (NSS) and will be effective from July 1.
According to a circular, the rate will be available only to those people who are on the Active Taxpayers List (ATL). The rate will be 30 percent for those who are not on the ATL.
A tax official said that at present, the withholding tax rate was 10 percent on profits of NSS while 5 percent tax will have to be deposited at the time of depositing income tax returns. Under the amendments introduced in the Income Tax Ordinance through the Finance Act 2021, now it will be 15 percent and there will be no requirement at the time of filing of tax returns.
The government offers higher profit rates on savings schemes including Defence Savings Certificate, Behbood Savings Certificates, Regular Income Certificates, Special Savings Certificate, Pensioners Benefit Accounts, Shuhada Family Welfare Account, and Short Term Savings Certificates.
