Latest FBR Releases
The Federal Board of Revenue has announced that the 15@ surcharge under section 4A of the Income Tax Ordinance 2001 is payable by all tax payers of their tax liability for the Tax year 2011, irrespective of whether their tax year ends on 31st December 2010 or 30th June 2011 or any other date.
In a circular issued here today, the FBR has made certain clarifications to the 15% Surcharge under section 4A of the ordinance in view to address the queries being received by the Board suggesting multiple interpretations of this Section and to streamline the implementation of this time bound provision.
The circular further clarifies that the Tax Liability for the entire Tax Year 2011 may not be subjected to the imposition of surcharge and the same be levied on the proportionate liability for a period of three and a half month.
It may hence be noted again that the surcharge is to be computed @ 15% of the Income Tax payable for three months and a half on pro-rata basis and the tax liability inclusive of 15% surcharge so calculated is to be set off against the taxes withheld or collected in the tax year.