Kindly Comments-Tax Exemption

[acma_islamabad]

My Dear Fellows

Assalam o eliekum

As we know that u/s 153 "Payment for goods and services" of the income tax ordinance 2001 , Every prescribed person makinga payment in full or part including for payment for goods and services shall, at the time of making the payment, deduct tax from the gross amount.

In relation to above mentioned, should we deduct tax at source on payment for insurance premium (Resident Company). Most of the persons replied "No" as per CBR Circular No 1(25) IT-1/80, dated Oct 1, 1980 which confirmed that no deduction to be made u/s 50(4) income tax ordinance 1979 for premium paid to insurance companies"

My observations are as under

1. Is this circular still exists or withdrawn? and how we check the status of withdrawn circulars as a ordinary person other than tax specialist/consultant
2. If it is still exists, then why amendment not made in the income tax ordinance 2001 or related Second Schedule? as the ref in the above mentioned is u/s 50(4) of income tax ordinance 1979 , a different section.
3. How a ordinary person find any such sort of amendments which are not contained in the Ordinance after conceded a long period of time.

Kindly comment

[danishayub_76]

Dear.

As per my understanding the withholding tax is deductible as per Schedule 1, Div11, Part 3 of ITO 2001. The circular date is too old. The ITO 2001 is amended and updated.

regards,

[Darwin Smith]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by acma_islamabad</i>
<br />My Dear Fellows

Assalam o eliekum

As we know that u/s 153 "Payment for goods and services" of the income tax ordinance 2001 , Every prescribed person makinga payment in full or part including for payment for goods and services shall, at the time of making the payment, deduct tax from the gross amount.

In relation to above mentioned, should we deduct tax at source on payment for insurance premium (Resident Company). Most of the persons replied "No" as per CBR Circular No 1(25) IT-1/80, dated Oct 1, 1980 which confirmed that no deduction to be made u/s 50(4) income tax ordinance 1979 for premium paid to insurance companies"

My observations are as under

1. Is this circular still exists or withdrawn? and how we check the status of withdrawn circulars as a ordinary person other than tax specialist/consultant
2. If it is still exists, then why amendment not made in the income tax ordinance 2001 or related Second Schedule? as the ref in the above mentioned is u/s 50(4) of income tax ordinance 1979 , a different section.
3. How a ordinary person find any such sort of amendments which are not contained in the Ordinance after conceded a long period of time.

Kindly comment
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Section 31 of Finance (No.2) Act, 2008 provides that a three year exemption will apply to these companies who have a tax liability of less than €40,000 per year by reducing this liability back to nil.

Regards,
877taxrelief.com