The Federal Board of Revenue (FBR) has given a deadline of November 30, 2023, to banks for payment of 40 percent additional tax on windfall income, profits, and gains arising during calendar years 2021 and 2022.
According to S.R.O.1588 (l)/2023 issued by the FBR on Wednesday, the Federal Government has specified the banking companies to be the sector for the purpose of section 99D of the Income Tax Ordinance.
The FBR has determined that the method by which the windfall income, profits, and gains are required to be computed shall be in accordance with the provisions of this notification. The FBR has also specified that the rate of tax for the purpose of the said section 99D shall be 40 percent.
The scope of windfall income, profits, and gains shall be as computed in this SRO for the calendar years 2021 and 2022 corresponding to tax years 2022 and 2023 respectively, for the purpose of the section 99D.
The FBR has fixed November 30, 2023, to be the date by which the payment of the additional tax for the purpose of section 99D shall be made, or within such extended period not exceeding fifteen days, as the Commissioner, for reasons to be recorded in writing may allow, on an application in writing for extension of date by the taxpayer.
The FBR has specified that payment of the additional tax shall be made in the federal treasury through a prescribed challan or computerized payment receipt.
The windfall income, profits, and gains shall be computed in accordance with the laid down formula, FBR added.