12-20-2011, 07:45 PM
The columns you have referred seem to be irrelevant or I could not understand that.
With respect to second paragraph of your question, section 168 of the ITO, 2001, lays down general rule that tax deducted at source are adjustable against tax liability. The only exception is that tax deducted at source is not adjustable against final tax liability. Section 168 does not say that tax deducted at source is not adjustable against minimum tax liability. Hence they are adjustable.
This interpretation is also supported from the FBR return.
Suppose a company has made 0 profit.
While its turnover is 1 lac.
Tax credit is also zero
Tax deducted on cash withdrawal is 100
Now while filing IT-1, Column 161 will be zero as well as column 162. Column 163, 164, 165 will also be zero.
Column 166 will be [1%of turnover - Column 166 - col.162, 163,165 ]
Column 166 will be 1% of 1 lac -zero = 1,000
Column 167 will also be Rs.1,000.
Column 168 will show surcharge 15% x3.5/12x10,000 = 40 (round figure)
Column 169 will be 1040
Columns 170 shall show tax deducted on cash withdrawal that is Rs.100
Tax payable under col 171 is 1040 - 100 = 940
Hence the pattern of prescribed format of return also shows that tax deducted at source, not being final tax liability, are adjustable against minimum tax liability.
With respect to second paragraph of your question, section 168 of the ITO, 2001, lays down general rule that tax deducted at source are adjustable against tax liability. The only exception is that tax deducted at source is not adjustable against final tax liability. Section 168 does not say that tax deducted at source is not adjustable against minimum tax liability. Hence they are adjustable.
This interpretation is also supported from the FBR return.
Suppose a company has made 0 profit.
While its turnover is 1 lac.
Tax credit is also zero
Tax deducted on cash withdrawal is 100
Now while filing IT-1, Column 161 will be zero as well as column 162. Column 163, 164, 165 will also be zero.
Column 166 will be [1%of turnover - Column 166 - col.162, 163,165 ]
Column 166 will be 1% of 1 lac -zero = 1,000
Column 167 will also be Rs.1,000.
Column 168 will show surcharge 15% x3.5/12x10,000 = 40 (round figure)
Column 169 will be 1040
Columns 170 shall show tax deducted on cash withdrawal that is Rs.100
Tax payable under col 171 is 1040 - 100 = 940
Hence the pattern of prescribed format of return also shows that tax deducted at source, not being final tax liability, are adjustable against minimum tax liability.
