The Federal Board of Revenue (FBR) has exempted tax from provisions of section 7B (tax on profit on debt) of the Income Tax Ordinance 2001 for recipients of profit on debt from Behbood Saving Certificates or Pensioners' Benefit Accounts. In this regard, the FBR has issued SRO.1217(I)/2017 here on Friday.
The Economic Coordination Committee (ECC) has granted exemption from the provisions of Section 7B of the Income Tax Ordinance 2001 for recipients of profit on debt from Behbood Saving Certificates and Pensioners Benefit Accounts. According to the notification, the provisions of section 7B shall not apply to yield or profit on investment in Bahbood Savings Certificate or Pensioner's Benefit Account, provided that tax on the said yield or profit on debt is paid at the rates specified in Division I of Part I of the First Schedule subject to clause (6) of Part III of the Income Tax Ordinance 2001.
Following is the text of the SRO issued here on Friday: In exercise of the powers conferred by sub-section (2) of section 53 of the Income Tax Ordinance, 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 NO.ECC-118/21/2017 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, in Part IV, after clause (102), the following new clause shall be added, namely:- "(103) The provisions of section 7B shall not apply to yield or profit on investment in Bahbood Savings Certificate or Pensioner's Benefit Account, provided that tax on the said yield or profit on debt is paid at the rates specified in Division I of Part I of the First Schedule subject to clause (6) of Part III."