Question

Advance Tax on Behbood Certificate income

I am a retired person, I am drawing pension form government treasury. I have also invested in RIC, PBA and Behbood Certificates and get profits on half yearly/ monthly basis.

The final tax is deducted from profits on bank deposits and RIC but no profit is deducted on PBA and Behbood Certificate income and I have to pay 5% with the return in Sep every year.

Now, I received notice from FBR for payment of Advance Tax keeping in view the "Tax Chargeable" in the last return and demanded 1/4 this amount.

In-fact "Tax Chargeable" is the accumulation of (Fixed Tax on half yearly profits deposits and Regular Income Certificates which is deducted at source @ 15%) and (5% tax on income from PBA and Behbood Certificates which i have paid with return). NOW FBR is demanding 1/4 of the total tax paid in advance which 4 time more than the Admitted tax liability as per my last return, What I can do now? please need guidance.

Regards

Answer 1

You can make calculations of annual tax payable and taxes deducted at source and respond to FBR accordingly.