Home »Taxation » Pakistan » Tax adjustments possible through employers as well?
The employees including salaried class must take tax adjustment from their employers instead of waiting for refunds from the Federal Board of Revenue (FBR). Imtiaz Ahmad Khan, IT Expert and former general manager of Pakistan Revenue Automation Limited (PRAL)-FBR explained that the employees should avail the benefits already available to them under Income Tax Ordinance 2001. The employees can easily get their adjustments from their employers and no need for waiting for refunds. The employees are entitled to tax adjustments from their employers under the law.

Under the section 149 of Income Tax Ordinance 2001, income tax in respect of an employee is required to be deducted by the persons responsible for paying salary to an employee after making adjustment of tax withheld from employees under other heads and tax credit admissible under sections 61, 62, 63 and 64 during the year after obtaining documentary evidence.

Most of the persons responsible for paying salary to employees deduct the income tax under section 149 of the Income Tax Ordinance but do not make tax adjustment of tax withheld from employees under other heads because of the fact that the employees do not submit the adjustment claims to their employers. Whereas tax under various heads is withheld from the employees by various agencies like banks, motor vehicle registration authorities, telecommunication companies, electricity distribution companies, insurance companies, educational institutions, property registration/transferring authorities, airlines, etc. which are adjustable and the employees can get this adjustment from their employers before release of salary for the month of June for the tax year 2019.

Adjustable taxes withheld by various agencies under the income tax ordinance 2001 are as under:

All employees of Federal Govt., Provincial Govt., Autonomous Bodies, Private Sector organizations, etc. can avail this golden opportunity of getting tax adjustment from their employers by submitting relevant evidences of tax deductions, meaning thereby that they will not have to wait for refund from FBR if they take this adjustment from the tax deductible from their salary during the month of June. Moreover, if any excessive amount is withheld by the employer during the year they can take that adjustment in the month of June as well. Employees should contact their employers immediately well before processing of pay roll for June-2019 so that tax adjustment is made by the employers in a timely manner. For the sake of convenience and ready reference the IT-3 Form (Declaration by Salaried Persons - To be Submitted to the Employer by the Employee) has been notified by FBR, Imtiaz Ahmad Khan added.


Sr. Description Section


1 Withdrawal from Pension Fund 156B

2 Cash Withdrawal from Bank 231A

3 Certain Banking Transactions 231AA

4 Motor Vehicle Registration Fee 231B(1)

5 Motor Vehicle Transfer Fee 231B(2)

6 Motor Vehicle Sale 231B(3)

7 Motor Vehicle Leasing 231B(1A)

8 Private Vehicle Tax 234

9 Electricity Bill of Domestic Consumer 235A

10 Telephone Bill 236(1)(a)

11 Cellphone Bill 236(1)(a)

12 Prepaid Telephone Card 236(1)(b)

13 Phone Unit 236(1)(c)

14 Internet Bill 236(1)(d)

15 Prepaid Internet Card 236(1)(e)

16 Domestic Air Ticket Charges 236B

17 Sale/Transfer of Immovable Property 236C

18 Functions/Gatherings Charges 236D

19 Educational Institution Fee 236I

20 Purchase/Transfer of Immovable Property 236K

21 Purchase of International Air Ticket 236L

22 Banking transactions otherwise than through cash 236P

23 Education related expenses remitted abroad 236R

24 Advance tax on general insurance premium 236U

25 Advance tax on life insurance premium 236U


Copyright Business Recorder, 2019

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