The Federal Board of Revenue (FBR) has granted reduction/exemption on the profit or yield on investment in Shuhadas Family Welfare Account as granted on profit on debt on Bahbood Savings Certificates and Pensioners' Benefit Accounts. The FBR has issued SRO 1280(I)/2017 here on Tuesday in order to provide relief to the families of Shuhada (martyrs).
The Economic Coordination Committee (ECC) of the Cabinet has approved a proposal to include words "and Shuhada Family Welfare Account" in clause (6) Part III and clause (36 A), Part IV of the Second Schedule to the Income Tax Ordinance 2001. Details revealed that in recognition of the sacrifices rendered by Shuhada (martyrs) and their family members, the finance minister in his budget speech 2017-18 had announced launching of a new scheme through Central Directorate of National Savings (CDNS) whereby guaranteed and enhanced profit will be given to the families of Shuhada through CDNS proposed Shuhadas Family Welfare Account (SFWA) having features identical to Bahbood Savings Certificates and Pensioners' Benefit Accounts.
It is pertinent to mention that Clause 36A was inserted in Part-IV of Second Schedule of Income Tax Ordinance vide circular No 12 of 2004 regarding exempting "Profit on Debt" on Bahbood Savings Certificates and Pensioners' Benefit Accounts from withholding tax. In addition, there is a reduction in tax liability under Clause (6) in Part-III of Second Schedule of Income Tax Ordinance 2001 regarding yield or profit on investment in Bahbood Savings Certificates or Pensioners' Benefit Accounts that shall not exceed 10 percent of such profit.
As Federal Board of Revenue is the competent forum to grant reduction/exemption of applicable taxes, Finance Division had approached tax authorities as well as CDNS to grant reduction/exemption on the profit or yield on investment in Shuhadas' Family Welfare Account as granted on profit on debt on Bahbood Savings Certificates and Pensioners' Benefit Accounts.
Through SRO 1280(I)/2017 issued by the FBR, tax authorities have granted reduction/exemption on the profit or yield on investment in Shuhadas' Family Welfare Account. Following is the text of the SRO 1280(I)/2017 issued here on Tuesday:- In exercise of the powers conferred by sub-section (2) of section 53 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Board with the approval of federal minister-in-charge and pursuant to the approval of the Economic Coordination Committee of the Cabinet contained vide Case # ECC-110/21/2017, dated the 1st November 2017, is pleased to direct that the following further amendment shall be made in the Second Schedule to the said Ordinance, namely:-
In the aforesaid Schedule,-
(a) in Part III, in clause (6), after the word "Account", the words "and Shuhada Family Welfare Account" shall be inserted; and
(b) in Part IV, in clause (36A), after the word "Account", the words "and Shuhada Family Welfare Account" shall be inserted.
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