Do you know that you are not required to pay quarterly ADVANCE TAX in Pakistan? If you don’t want to regret it later, then you must read this before paying quarterly advance tax in Pakistan.
What is Quarterly Advance Tax in Pakistan?
A tax that is paid quarterly in advance is called a quarterly advance tax.
When Quarterly Advance Tax is Paid in The Case of An Individual Taxpayer?
(a) in respect of the September quarter, on or before the 15th day of September;
(b) in respect of the December quarter, on or before the 15th day of December;
(c) in respect of the March quarter, on or before the 15th day of March; and
(d) in respect of the June quarter, on or before the 15th day of June.
How Quarterly Advance Tax is Calculated in the Case of An Individual Taxpayer?
The quarterly advance tax in the case of an individual taxpayer shall be computed in accordance with the following formula:
(A/4)–B
where —
A is the tax assessed to the taxpayer for the latest tax year or latest assessment year; and
B is the tax paid in the quarter for which a tax credit is allowed
Tax Credit Allowed under The Income Tax Ordinance, 2001
The head-wise detail of a few tax credits allowed, in addition to others, under The Income Tax Ordinance, 2001 is as follows:
Advance tax paid on registration of a motor vehicle
Advance Token Tax paid on motor vehicles
Advance Tax Paid on Electricity Consumption
Advance Tax Paid on Telephone and internet usage
Advance Tax Paid on purchase or transfer of immovable property
Advance Tax Paid on sale or transfer of immovable Property
Advance Tax Paid while remitting amounts abroad through credit or debit or prepaid cards
Advance Tax Paid on Supply of Goods
Advance Tax Paid on Provision of Services
Advance Tax Paid on Execution of Contracts
