Observer Report Karachi
The accountholders have paid Rs66 billion as income tax on profits derived on their deposits during the fiscal year 2020/21, official sources said on Saturday.
The tax payment in the fiscal year 2020/21 is 10 per cent higher, compared with the Rs60 billion paid in the preceding fiscal year.
The sources at the Regional Tax Office (RTO) Karachi, which has the jurisdiction over the collection of income tax on profit from the banking deposits, attributed the record deposits of the banking system to the Covid-related restrictions.
The deposits of the banking system reached a record high of Rs19.795 billion by June 30, 2021. The sources said over the last years, deposits of the banking system were increasing as the people had preferred risk-free investment
. The Federal Board of Revenue (FBR) collects the tax on profit on banking deposits under Section 151 of the Income Tax Ordinance, 2001 at the rate of 15 per cent. The banks withholding the amount at the time of payment of profit to their depositors.