The Federal Board of Revenue (FBR) has provided taxpayers the relevant account number for depositing the bonus shares, in case shareholders have failed to pay tax equal to five percent of the value of bonus shares to the company quoted on stock exchange, within the prescribed time limit. In this regard, the FBR has issued instructions to the field formations here on Thursday about Title and Account No. of Federal Board of Revenue maintained with Central Depository Company of Pakistan Limited
According to the FBR, as per provisions of Section 236 M of the Income Tax Ordinance, 2001, introduced through Finance Act, 2014, every company quoted on stock exchange, while issuing bonus shares to its shareholders, is required to withhold five percent of the bonus shares, which shall only be issued to them after collecting tax equal to five percent of the value of the bonus shares issued to the shareholders.
However, in case the shareholders fail to pay the said tax to the company within the prescribed time, the company is required to deposit the bonus shares withheld by its shareholders in Central Depository Company Limited (CDC). Queries have been received in the Board, regarding Title and Account Number of Account maintained with CDC by FBR. In this regard, it is informed that account No. of Federal Board of Revenue with CDC is 04705-87224.
Field formations have been told to intimate the above mentioned account of the FBR to all the taxpayers for depositing the shares in the said account in case shareholders have failed to pay tax equal to five percent of the value of bonus shares to the company within the prescribed time, the FBR added.
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