INDIVIDUAL, AOP

COMPANIES

CALCULATION OF QUARTERLY INSTALLMENT

• In the case of individual or AOP, whose last assessed income is at least 200,000. The amount of advance tax due for a quarter shall be computed according to the following formula, namely:-
   

(A/4) - B

Where –

A is the tax assessed to the taxpayer for the latest tax year or latest assessment year under the repealed Ordinance; and

B is the tax paid in the quarter for which a tax credit is allowed under section 168, other than tax deducted under section 149 or 155.
 

•  In the case of a company, the amount of advance tax due for a quarter shall be computed according to the following formula, namely:-

(A/4)  - B

Where –

A. is the tax assessed to the taxpayer for the latest tax year or latest assessment year under the repealed Ordinance; and

B. is the tax paid in the quarter for which a tax credit is allowed under section 168, other than tax deducted under section 149 or 155.

MANDATORY ESTIMATION OF TAX PAYABLE BY THE COMPANIES FOR THE RELEVANT TAX YEAR 

 where the taxpayer is a company who is required to make payment of advance tax in accordance with sub-section (4) of section 147, shall estimate the tax payable by him for the relevant tax year, at any time before the last installment is due. In case the tax payable is likely to be more than the amount he is required to pay under sub-section (4), the taxpayer shall furnish to the Commissioner an estimate of the amount of tax payable by him and thereafter pay such amount after making adjustment for the amount (if any) already paid in terms of section 147(4) of the Income Tax Ordinance, 2001.