Exemption from deduction of Advanced Tax v/s 235 of the Income Tax Ordinance

GOVERNMENT OF PAKISTAN
REVENUE DIVISION
FEDERAL BOARD OF REVENUE

Islamabad, the November 22, 2010

NOTIFICATION
(Income Tax)

S.R.O. 1053 (I)/2010. - In exercise of powers conferred by clause (b) of sub-section (3) of section 159 of the Income Tax Ordinance 2001, (XLIX of 2001), the Federal Board of Revenue is pleased to exempt the persons, from the payment of withholding tax, who have paid the entire advance tax liability as provided and computed under section 147 thereof, for the current tax year, as exempt from deduction of Transitional Advance Tax deductible under section 235 of that Ordinance, subject to the conditions that, the Commissioner of Inland Revenue issues an exemption certificate under section 159(1) of the said Ordinance, within one month of receipt of the application as per Table-I below, if he is satisfied that such specified taxpayer has paid the entire amount of advance tax under section 147 thereof due from him for the current tax year for which exemption certificate is being sought:

Provided that such exemption certificate shall not be issued where the transitional advance tax deductible under section 235 of that Ordinance is a minimum tax liability.

TABLE-I

Application for Certificate of Exemption
Under section 159 of the Income Tax Ordinance 2001 from deduction of Transitional Advance Tax deductible under Section 235

The Commissioner

I ____________ of ____________ National Tax No. ____________ hereby declare that I am entitled to a NIL certificate for exemption from Transitional Advance Tax deductible under Section 235 of the Income Tax Ordinance 2001 read with the provisions of SRO.......(I)/2010:

2. Without prejudice to the above, I also declare that my Advance Tax Liability due under section 147 of the Ordinance for the current Tax Year ________ is computed under section 147 ( ), as follows:

(Amount in Rs.)

3. I declare that I have paid my Total Advance Tax Liability under section 147 amounting to Rs.__________ vide Challan / CPR No.__________ Dated _______ (Original Challan / CPR enclosed).

4. I undertake that I have paid all my income tax and sales tax liabilities till-date, and arrears for the prior period are not outstanding against me.

Signature ____________
Name ____________
National Tax Number ____________

Address ____________

Date ____________

2. The exemption certificate shall be issued by the Commissioner of Inland Revenue under section 159(1) of the said Ordinance as per Table-II below, namely:-

TABLE-II

Certificate of Exemption
Under sub-section (1) of section 159 of the Income Tax Ordinance 2001 from deduction of Transitional Advance Tax Deductible under Section 235

OFFICE OF THE COMMISSIONER OF INLAND REVENUE
REGIONAL TAX OFFICE / LARGE TAXPAYERS UNIT

No. Dated:

Since Mr./Ms./Mrs./M/s ____________ CNIC / NTNo ____________ being a taxpayer of RTO / LTU __________ has paid the entire advance tax under section 147 of the Income Tax Ordinance 2001 amounting to Rs. __________ for the Tax Year _________, and that no tax arrears pertaining to income tax and sales tax are outstanding against him, therefore it is certified that further Advance Tax deductible under section 235 (Chapter XII of the Ordinance) is not payable in this case.

[C.No.4(13)Secy(DON)/10]

(Asrar Raouf)
Member Policy (Direct Taxes)/
Additional Secretary