The status of 15% surcharge in refund case

[student_of_law]

Flood surcharge has been deducted by banks under Chapter XII of the ITO, 2001.
S.168 (2), gives a general rule that a person from whom tax has been deducted under Chapter XII shall be allowed a tax credit. Exceptions to this rules are given in sub section 3 or in the relevant sections where such deduction is treated as final tax.

So unless specifically stated that certain tax deduction at source is final, a person would remain entitled to its adjustment by virtue of general rule contained in s.168(2).

Now if anyone is thinking that s.168 speaks about tax deducted under Chapter XII or Div III Of Part V,of Chapter X, while it does not speak of surcharge so deducted. Then I would refer definition of tax at s.2(63). It says the term "tax" includes any.... charge or any sum or amount leviable or payable under this Ordinance. Hence tax includes surcharge.

So if the tax deducted at source under certain section is adjustable then same treatment would be given to surcharge deducted under that section. If tax deducted under certain section is final the surcharge deducted under that section would also be final.