Written by Akhter Syed in Taxation Banks will deduct 0.8% adjustable advance tax from individuals not appearing on the Active Taxpayers List (ATL) when their combined daily cash withdrawals exceed Rs50,000. The Federal Board of Revenue (FBR) has maintained a 0.8% withholding income tax on cash withdrawals by non-filers for Tax Year 2027, covering the period from July 1, 2026, to June 30, 2027. According to the Income Tax Ordinance, 2001, updated up to June 30, 2026, the provision is explained under Section 231AB, which governs advance tax on cash withdrawals. Under the provision, every banking company is required to deduct adjustable advance tax at the rate of 0.8% from cash withdrawals made by individuals whose names do not appear on the Active Taxpayers List (ATL). The tax applies when the aggregate amount of cash withdrawals by an…