04-05-2007, 06:30 PM
Dear,
Mr. Mahmood has called our attention to a very important aspect of tax on withdrawls.
There is common feeling that this tax is merely a burden. The economy where people are already doing so much in balck money leading to money laundring issues, such taxes on bank dealings will further discourage the public to bring their businesses within the boundries of documented economy.
In my view, (as also substantiated by Mahmodd Sahib), this tax can never be supposed as a burden on actual tax payers. This is just in the nature of advance tax as we also pay income tax on utility bills and mobile cards etc. This must be adjusted by every one while filing the income tax return for any tax year.
However, in certain cases, this tax could be deemed as burden. Like the guys whose incomes are below the taxable limits and who dont have to file the returns.
In pakistan, it happens. Mobile phones are now owned by every one. So many of them are earning below the taxable limits. But all such guys have to pay the tax on the purchase of mobile cards. This happens in so many cases. Therefore, in my view the public should be educated enough to get their refunds from the tax authorities, if their incomes are below the tax limits or if tax payable by them is lesser than the tax already paid by them or collected from them. For individuals very fewer taxes fall in presumptive or may be no tax is in presumptive at the moment.
Therefore, all taxes paid by individuals or collected from them should be adjusted by them against their total payable tax while filing the return.
I recommend that every one should try to file a return. This will take some time but will also make their legal worth and by means of such return one can get the refund from the tax department in respect of any unjustified collection made from him.
Regards,
Kamran
Mr. Mahmood has called our attention to a very important aspect of tax on withdrawls.
There is common feeling that this tax is merely a burden. The economy where people are already doing so much in balck money leading to money laundring issues, such taxes on bank dealings will further discourage the public to bring their businesses within the boundries of documented economy.
In my view, (as also substantiated by Mahmodd Sahib), this tax can never be supposed as a burden on actual tax payers. This is just in the nature of advance tax as we also pay income tax on utility bills and mobile cards etc. This must be adjusted by every one while filing the income tax return for any tax year.
However, in certain cases, this tax could be deemed as burden. Like the guys whose incomes are below the taxable limits and who dont have to file the returns.
In pakistan, it happens. Mobile phones are now owned by every one. So many of them are earning below the taxable limits. But all such guys have to pay the tax on the purchase of mobile cards. This happens in so many cases. Therefore, in my view the public should be educated enough to get their refunds from the tax authorities, if their incomes are below the tax limits or if tax payable by them is lesser than the tax already paid by them or collected from them. For individuals very fewer taxes fall in presumptive or may be no tax is in presumptive at the moment.
Therefore, all taxes paid by individuals or collected from them should be adjusted by them against their total payable tax while filing the return.
I recommend that every one should try to file a return. This will take some time but will also make their legal worth and by means of such return one can get the refund from the tax department in respect of any unjustified collection made from him.
Regards,
Kamran
