Need Help W.H Tax Adjustment to reduce salary tax

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Every employer, while deducting income tax payable on the income chargeable under the head “Salary” of its employees, is allowed under the provisions of Section 149 of the Income Tax Ordinance, 2001 to make such adjustments, as may be necessary, for any excess deduction or deficiency arising out of any previous deduction or failure to make deduction during the Tax Year.
2. A salaried person at times is also liable to withholding tax as bank account holder (S-231A), Purchase of a motor vehicle (S-231B), Tax on motor vehicle (S-234), subscriber of telephone (including mobile phone) (S236) of the Income Tax Ordinance, 2001, in addition to the tax deduction on salary income u/s 149 of the Income Tax Ordinance, 2001. The tax so collected/deducted in certain situations exceeds the actual tax payable by such a salaried person, entitling him to a refund.

3. For facilitating salaried taxpayers having income exclusively from salary, the employer in order to work out the tax liability of the employee under section 149 of the Ordinance, is also allowed to make adjustment of the income tax payments by such salaried persons under section 231A, 231B, 234 and 236 of the Income Tax Ordinance, 2001 during a tax year. Such salaried taxpayer, is entitled to credit of such tax payment only if he is the owner of the bank account, motor vehicle or subscriber of telephone in his own name, as the case may be. The employer shall obtain the evidence of payment of the aforesaid tax by the employee, before allowing adjustment for such payments claimed by the employee. The evidence shall be retained by the employer for production before the tax authorities when required by them.


(II) TAX CREDITS ON,-
(a) donations to approved NPOs (section 61);
(b) investment in shares (section 62);
(c) contribution to approved pension funds (section 63); and
(d) profit on debt paid in respect of housing loans etc. (section 64).