Changes in the Taxation of Profit on Debt | Tax Year 2022 | Profit on Debt on Federal Govt Security скачать в хорошем качестве

Changes in the Taxation of Profit on Debt | Tax Year 2022 | Profit on Debt on Federal Govt Security

Profit on debt derived by an resident individual and association of persons from various schemes of National Savings (excluding Behbood, Pensioners and Shuhuda Welfare Accounts and certificate), deposits and accounts maintained with a Banking Company or Financial Institution, Federal, Provincial or Local Government securities or on bonds, certificates, debentures, security or instrument of any king issued by a banking company, financial institution or company upto Rs. 36,000,000 in aggregate was chargeable to tax as a separate block at the rates ranging from 15% to 20%, depending upon the quantum of such income. Aggregate income if exceeding Rs. 36,000,000 was chargeable as global income by inclusion in total/taxable income. Now the threshold for charge as a separate block of income has been reduced from Rs. 36,000,000 to Rs. 5,000,000. As a result aggregate profit on debt from the forgoing instruments etc. upto Rs. 5,000,000 will be chargeable as a separate block of income and where the aggregate of such income exceeds Rs. 5,000,000 then tha same will be chargeable as global income by inclusion in total/taxable income. As a consequence of the foregoing, the rate of tax on Profit on debt chargeable as a separate block of income has been fixed flat 15% instead of earlier rates ranging from 15% to 20% depending upon the quantum of income. A new Clause (20) has been inserted in Part III of 2nd Schedule (Reduction in tax liability) providing that the tax payable by a person, other than a banking or insurance company, in respect of profit on debt from investment in Federal Government securities shall be fifteen percent of the gross amount of the profit on debt and that the tax so payable shall be final tax on the income representing such profit on debt. #profitondebt #profitondebttaxation #taxationist #taxationistcorporateconsultants