The Federal Board of Revenue (FBR) will continue to charge reduced rate of 0.4 per cent withholding tax on banking transactions of non-filers up to September 30, 2017. According to SRO 602(1)/2017 issued by the FBR here on Tuesday, the FBR has granted extension of reduced withholding tax rate for non-filers under section 236P of the Income Tax Ordinance, 2001 up to 30th September, 2017. Through an SRO, the rate of tax withholding u/s 236p of the Income Tax Ordinance, 2001 has been reduced to 0.4 per cent from 0.6 per cent on the said bank transactions.

Following is the text of the SRO issued here on Tuesday: SRO 602(1)/2017.- In exercise of the powers conferred by proviso under Division XXI of Part IV of the First Schedule to the Income Tax Ordinance, 2001 (XLIX of 2001), the Board with the approval of federal minister-in-charge is pleased to direct that in its notification No SRO 289(1)/2017, dated 27th April, 2017, the following amendments shall be made namely:- In the aforesaid notification, for the words "first day of April, 2017 to thirtieth day of June, 2017" the words "first day of July, 2017 to thirtieth day of September, 2017" shall be substituted.

Copyright Business Recorder, 2017