State Minister for Revenue, Hammad Azhar, has cleared that there is no change in the cash limits or tax rates on withdrawal from bank accounts.
He added that the only change brought by the government is that income tax return filers have been removed from the scope of the relevant law under the Finance 2nd Supplementary Act 2019.
“There has been no change in cash limits or tax rates on withdrawal from bank accounts. The only change which has been made through Finance 2nd Supp Act 19 is taking out the tax filers from the scope of relevant law. Now these withholding provisions are applicable only to non-filers,” stated Azhar in a tweet.
The Federal Board of Revenue also refuted the news circulating on media regarding the revised rates and limits for tax on cash withdrawal from bank accounts under Section 231A and on the issuance of bank instruments like pay orders and demand drafts under section 231AA of the Income Tax Ordinance 2001.
An FBR spokesperson said that the government has taken a concessionary step to encourage commercial activity through banking channels that deserves appreciation.
It needs to be mentioned here that rumors started making rounds across a section of media that a new tax has been implemented on cash withdrawals from bank for non-filers for transaction exceeding Rs. 25000.
According to the rumors, the government had reduced the amount of money transfer from Rs. 50 thousand to 25 thousand. These reports raised concerns among the public as salaried individuals and even students were to be affected by the decision.
