PTR on profit on debt

[rememberence]

Hi guys

There has been a major change in ITO, 2001. Now the tax on profit on debt shall be treated as full and final. Update yourself if some of you people are on annual audits or half yearly review.

Thnx some of the members of this forum are really interested in profession specific issues.

[insaan]

yes very right
here is the section 4 reference purpose

s 151 now reads as under
151. Profit on debt.-
(1) Where –
(a) where a person pays yield on an account, deposit or a certificate under the National Savings Scheme or Post Office Savings Account;
Clause (a) substituted by Finance Act, 2003 which previously read as follows
(a) a person pays yield on a National Savings Deposit Certificate, including a Defence Savings Certificate, under the National Savings Scheme;
(b) a banking company or (Substituted for "and" by Finance Act, 2003) financial institution pays any profit on a debt, being an account or deposit maintained with the company or institution;
(c) the Federal Government, a Provincial Government or a local authority pays to any person (Comma and Words ", other than a financial institution," omitted by Finance Act, 2003) profit on any security other than that referred to in clause (a) issued by such Government or authority; or
(d) a banking company, a financial institution, a company referred to in sub-clauses (i) and (ii) of clause (b) (Substituted for "clauses (a) and (b)" by Finance Act, 2003) of sub-section (2) of section 80, or finance societies pays any profit on any bond, certificate, debenture, security or instrument of any kind (other than a loan agreement between a borrower and a banking company or a development finance institution) to any person other than financial institution, the payer of the profit shall deduct tax at the rate specified in Division I of Part III of the First Schedule from the gross amount of the yield or profit paid as reduced by the amount of Zakat, if any, paid by the recipient under the Zakat and Ushr Ordinance, 1980 (XVII of 1980), at the time the profit is paid to the recipient.
(2) This section shall not apply to any profit on debt that is subject to subsection (2) of section 152.
(3) <b>Tax deducted under this section shall be a final tax on the profit on debt arising from transactions referred to in <u>clauses (a)</u>, <u>(b) and (d) of sub-section (1</u>)</b>

look only profit on debt on clauses a,b,&d is final tax
profit in debt on clause c shall not be final tax
proft on debt on which s-152(2)applies shall not be a final tax
and any other profit on debt shall go under the head income from other sources , except , where person's business is to earn such profit,it wud go under the head income from business

[Abdur.Rehman]

Thanx for updation
But it is applicable for next accounting period. So, not to remember on these audits or reviews.

[rememberence]

<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Abdur.Rehman</i>
<br />Thanx for updation
But it is applicable for next accounting period. So, not to remember on these audits or reviews.

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

It is applicable on this period, bekoz 6 months of tax year 2007 are yet to be passed..and if the co has year end of December 31, so updation shall apply

[Abdur.Rehman]

i have no point in that.
but u mentioned that someone on half yearly or annual audit now shall take care of it.
my concern was regarding that.
no issue regarding Dec 06 or June 07

[rememberence]

Corri*****m>>>

This is not applicable on Company rather its applicable on individuals and AOP!