The Federal Board of Revenue (FBR) has changed the timing of deposit of tax collected/deducted by a person (withholding agent) other than the federal/provincial governments under Income Tax Ordinance 2001. Now in case of local deduction/collection is to be deposited on a weekly basis whereas in case of foreign payment the same is to be deposited before remitting the amount abroad. The FBR has amended the Income Tax Rules, 2002 through a notification issued Wednesday.

Following is the text of the notification: In exercise of the powers conferred by sub-section(1) of section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal Board of Revenue is pleased to direct that the following further amendments shall be made in the Income Tax Rules, 2002, the same having been previously published vide Notification No S.R.O.206(I)/2017 dated the 27th March, 2017 as required by sub-section (3) of the said section, namely:-

In the aforesaid Rules, in rule 43, for clause (b), the following shall be substituted, namely:

"(b) where the tax has been collected or deducted by a person other than the

Federal Government or a Provincial Government,-

(i) by remittance to the Government Treasury or deposit in an authorised branch of the State Bank of Pakistan or the National Bank of Pakistan, within seven days from the end of each week ending on every Sunday; and;

(ii) by remittance abroad to a non-resident through State Bank or any other banking company, prior to remitting abroad of the amount from which tax is to be deducted or collected."

Copyright Business Recorder, 2017