Effective Tax rate for RDA linked INPC for resident who has been an NRP in past.

Question

AOA,

I had opened an RDA account, made substantial investments in INCP while I was an NRP.  For the last two Tax years, I have been a resident. A 10% withholding tax is deducted from the profit of INPC by the bank. The annual profit exceeds Rs 5 million, and IRIS shows a tax rate ofu 15%.  I have searched for guidance on FBR/Tax documentation/SROs, but I have not found it. What should my tax rate be: 10% or 15% and which line item should I use for tax filing: 64040053, 64040057, 64040058, or any other?

Advance Thanks for your help.

Comments

Any answer for the above question???

Answer 1

1. Tax Rate: Your final tax liability is based on the progressive rates for resident individuals (Normal Tax Regime), as your annual profit exceeds Rs 5 million. The 10% WHT is adjustable advance tax.

2. Filing Code: If the profit is derived from Federal Government securities (a common destination for RDA funds), use Code 64040053 (Profit on debt u/s 151 from Federal Government securities).

Comments

Thank you very much