Islamabad: The Federal Board of Revenue (FBR) has issued a notification for financial institutions to settle the payment of a 40% additional tax on windfall income, profits, and gains for transactions that occurred in 2021 and 2022, as stated by a source on November 22.
According to the details in S.R.O.1588 (l)/2023, the banking companies will have to pay an additional tax on the windfall income, profits, and gains from foreign exchange dealings.
Moreover, the FBR shared that this tax measure is in accordance with section 99D of the Income Tax Ordinance. To meet the obligations of section 99D, the FBR has fixed November 30, 2023, as the deadline for the payment of additional tax.
In exceptional cases, the Commissioner may grant an extension of up to fifteen days, based on a written application by the taxpayer, accompanied by recorded reasons for the extension. The FBR specifies that the additional tax payment must be transacted through a prescribed challan or computerized payment receipt in the federal treasury.
Furthermore, the computation of windfall income, profits, and gains must adhere to the formula laid down by the FBR, ensuring a standardized and transparent process.
As a graduate in English Literature, Zohaib believes that words are not just a mere figment of imagination. It takes wisdom to be good at them. Following this reason, he is pursuing his career as Public Relations and Content Specialist at Zameen.com.
