Law: Income Tax Ordinance, 2001

Section: 114,114(A),115(3)(d),231A,236P

Law: Federal Ombudsman Industrial Reforms Act, 2013

Section: 9(1)

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 10(1),10(4)

INCOME TAX ORDINANCE, 2001 (XLIX OF 2001) Sections: 114, 114(A), 115(3)(d), 231A & 236P - Federal Tax Ombudsman Ordinance, 2000, Sections, 10(1) & 10(4) - Federal Ombudsman Industrial Reforms Act, 2013, Section, 9(1) - Return of income - Non-resident overseas Pakistani working abroad - Remittance of money through banking channel - Cash withdrawal from bank - Deduction of income tax Maladministration - Complaint against - FACTS The complainant, an overseas Pakistani/non-resident (NR) is working in Saudi Arabia. According to the complainant, he remits money from abroad through proper banking channel. However, at the time of withdrawal, the Bank deducts tax when the transaction exceeds fifty thousand rupees. He contended that as he is an overseas Pakistani working abroad and is not under obligation to file return of income under section 114 of the Income Tax Ordinance 2001 (the Ordinance), the tax deduction on cash withdrawals by the Bank is against law. ARGUMENTS It was contended that in terms of section 231A of the Ordinance, banks were bound to withhold/collect tax on cash transactions aggregating from all the bank accounts in a single day exceeding fifty thousand rupees. The amount so deducted is adjustable credit of which the complainant could claim in his return of income for relevant tax year. It was averred that as the complainant had failed to make out ease of maladministration against the Deptt. the complaint may he rejected. DECISION (A.) Filing of income tax return u/s 114(1) at the end of financial year for getting credit - The tax so deducted under section 231A of the Ordinance at the rate of 0.3% for filers and 0.6% for non-filers is adjustable. However. in order to get credit of the amount so withheld/collected above, the return at the end of the financial year is required to be tiled under section I 14(1) of the Ordinance. (B) Exemption from filing of return u/s 114 to non residents working abroad - In the instant ease the complainant, who is NR working abroad and who has no source of income in Pakistan is exempt from tiling of return in terms of section 115(3)(d) of the Ordinance. So a NR. who has no Pakistan source taxable income, is…

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