No withholding tax on cash withdrawals for quake victims

The Central Board of Revenue (CBR) has withdrawn 0.1 percent withholding tax on cash withdrawals, from the banks, made by the earthquake victims against the compensation received by the government.
The CBR on Tuesday amended the Second Schedule of the Income Tax Ordinance 2001 to implement the decision.
According to the notification, "the provision of section 231A of the Income Tax Ordinance 2001 shall not apply on cash withdrawal, from a bank, made by an earthquake victim against compensation received from the government including payment through Earthquake Reconstruction and Rehabilitation Authority (ERRA) account".
Presently, 0.1 percent withholding tax is deducted on the withdrawals of cash exceeding Rs 25,000.
The condition has been relaxed only to the extent of compensations received by the people of quake-hit areas. The CBR has used powers conferred by sub-section 2 of section 53 of the Income Tax Ordinance 2001.