The Federal Board of Revenue (FBR) has decided to provide a major incentive to the corporate sector by extending one-month period for payment of advance tax under Income Tax Ordinance 2001. It is learnt here on Tuesday that the FBR has proposed amendment in the Finance Bill (2009-10) through amendment in the Income Tax Ordinance 2001.
Through new amendment, the FBR would allow the corporate sector to pay advance tax for one month extended period. Resultantly, the board has provided benefit of one month to companies. According to sources, companies would be given one more month for payment of advance tax. Previously, advance tax was payable on 15th of the month on which quarter was ending.
Whereas now it has been proposed that the companies will pay advance tax on 15th of the following month in which the quarter ends. In this way, the tax pertaining to quarter ending on September will be payable by 15th of October. However, in case of June, the quarterly advance tax would be paid by 15th of June.
The decision would be instrumental in facilitating the business community to keep the tax amount in their business circulation for another month. This is a key incentive, which would also attract individuals and AOPs to convent themselves into companies for availing this benefit. In case the individuals and AOPs were being converted into companies, they could get benefit of one more month for payment of advance tax. The FBR has proposed the following amendment in the Finance Bill (2009-2010): "(5A) Advance tax is payable by a company to the Commissioner:
(a) in respect of the September quarter, on or before the 15th day of October;
(b) in respect of the December quarter, on or before the 15th day of January;
(c) in respect of the March quarter, on or before the 15th day of April; and
(d) in respect of the June quarter, on or before the 15th day of June.";
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