What is withholding tax and is it adjustable?

Question

Tax is being deducted on my banking and service transactions, and I am confused whether this tax can be adjusted in my return.

Answer 1

Yes, most of the tax deducted on your banking and service transactions can be adjusted in your income tax return.
There are 3 types of taxes typically charged on transactions (Sales Tax, Income Tax & FED).
Income tax is adjustable in your ITR (If payment is made internationally using a card, i;e, you have a Netflix subscription, the bank charge 5% on transactions for filers and 10% for non-filers under section 236Y). This will be shown in your MIS report in the IRIS Portal.

236Y. Advance tax on persons remitting amounts abroad through credit or debit or prepaid cards.— (1) Every banking company shall collect advance tax, at the time of transfer of any sum remitted outside Pakistan.