Income Tax Ordinance, 2001

CHAPTER-X

PROCEDURE PART V ADVANCE TAX AND DEDUCTION OF TAX AT SOURCE Division III Deduction of Tax at Source

From: 2023-07-01 - To: 0000-00-00 1[***] ______________________________________________________________________________ 1-Section “156B” omitted by Finance Act, 2020, dated 30-06-2020. Before omission read as under: 1[156B. Withdrawal of balance under Pension Fund.- (1) A pension fund manager making payment from individual pension accounts, maintained under any approved Pension Fund, shall deduct tax at the rate specified in sub-section (6) of section 12 from any amount - (a) Withdrawn before the retirement age 2[:] 3[Provided that the tax shall not be deducted in case of the eligible person suffering from any disability as mentioned in sub-rule (2) of rule 17 of the Voluntary Pension System Rules, 2005 which renders him unable to continue with any employment at the age which he may so elect to be treated as the retirement age or the age as on the date of such disability if not so elected by him.] 4[Provided further that the tax shall not be deducted on the share of the nominated survivor of the deceased eligible person and would be treated as if the eligible person had reached the age of retirement] (b) withdrawn, if in excess of 5[fifty percent] of his accumulated balance at or after the retirement age: 6[Provided that the tax shall not be deducted in case, the balance in the eligible persons’ individual pension account is invested in an approved income payment plan of a pension fund manager or paid to a life insurance company for the purchase of an approved annuity plan or is transferred to another individual pension account of the eligible person or the survivors’ pension account in case of death of the eligible person maintained with any other pension fund manager as specified in the Voluntary Pension System Rules, 2005.] 1-Section 156B was inserted vide the Finance Act, 2005 (VII of 2005 assented on 29th June, 2005) 2-The semicolon was substituted vide the Finance Act, 2006 (III of 2006 assented on 30th June, 2006) 3-Proviso was added vide the Finance Act, 2006 (III of 2006 assented on 30th June, 2006) 4-Proviso was added vide the Finance Act, 2006 (III of 2006 assented on 30th June, 2006) 5-Substituted for the figure “25%” vide the Finance Act, 2011 (XVI…