If either of the two is filer: joint accountholders to be treated as filer: FBR

The Federal Board of Revenue (FBR) has said that the joint account holders in banks will be treated as filer if at least one person in the joint account is a filer of income tax return. While clarifying a query raised by banking sector through an income tax circular issued here on Thursday, the FBR has said that in case a joint account is held in a bank by more than one person, joint account holders as an entity shall he treated as filer if at least one person in the joint account is a filer.
Similarly, in case an account is held in a bank in the name of a minor, the minor shall deemed to be filer if the parent, guardian or any person who has made deposits in the minor's account is filer. The FBR has further explained the dividend and profit on debt for non-filers [Section 150,151 read with Division I and IA, Part III of the First Schedule].
As per Paragraph (b), Division III, Part I of the First Schedule, the rate of tax on dividend is 10 percent. However, through the Finance Act, 20l 4, the rate of advance tax to be deducted under section 150 is 15 percent for non-filers. This means that in the ease of non-filers, advance tax shall be deducted @ 15 percent but the rate of tax on dividend, at the time of filing of return shall be 10 percent. The additional 5 percent tax for a non-filer shall be adjustable against the total income for the year, at the time of filing of return.
Regarding profit on debt, as per sub-section (3) of section 151, the rate of tax deductible on profit on debt was final for a taxpayer other than a company. Through the Finance Act 2014, a proviso has been added after sub-section (3) making tax deductible for a filer as final tax @ 10 percent of yield or profit, and 15 percent for a non-filer with yield or profit exceeding Rs 500,000. However, in order to attract the non-flier to file return, the additional 5 percent tax for a non-filer shall be adjustable against the total income for the year, the FBR added.