ISLAMAABD - The Federal Government on Wednesday has clarified that there is no withholding tax on withdrawal of Rs25,000 cash from banks.
The Federal government has not revised rates or limits for tax on cash withdrawal from bank accounts under section 231A and on issuance of cash denominated bank instruments such as pay orders and demand drafts under section 231AA of Income Tax Ordinance 2001. There has been no change in cash limits or tax rates in any of the two provisions of law. The only change which has been made through Finance 2nd Supplementary Act 2019 is taking out the tax filers from the scope of both these provisions. Now these withholding provisions are applicable only to non-filers, the spokesperson of the FBR said.