Quote:
Originally Posted by VAQAS
kindly explain minimum tax and advance tax..........tomorrow is my interview//////////
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Advance Tax Paid by the Taxpayer
147. Advance tax paid by the taxpayer.— (1) Subject to sub-section (2), every taxpayer 1
[whose income was charged to tax for the latest tax year under this
Ordinance or latest assessment year under the repealed Ordinance] other than –
2
[ ]
(b) income chargeable to tax under sections 5, 6 and 7;
3
[ ]
(c) income subject to deduction of tax at source under section
149; 4
[and]
5
[ ]
(d) income from which tax has been collected under Division II or
deducted under Division III6
[or deducted or collected under
Chapter XII] and for which no tax credit is allowed as a result
of sub-section (3) of section 168,
shall be liable to pay advance tax for the year in accordance with this section.
(2) This section does not apply to an individual where the individual‘s 7
[]
latest assessed taxable income excluding income referred to in clauses (a), (b),
8
[(ba),] (c) and (d) of sub-section (1) is less than 9
[
10[
11[one million] ] rupees.
1
[113. Minimum tax on the income of certain persons.
- (1) This section shall
apply to a resident company 2
[, an individual (having turnover of 3
[ten] million
rupees or above in the tax year 4
[2017] or in any subsequent tax year) and an
association of persons (having turnover of 5
[ten] million rupees or above in the
tax year 6
[2017] or in any subsequent tax year)] where, for any reason
whatsoever allowed under this Ordinance, including any other law for the time
being in force—
(a) loss for the year;
(b) the setting off of a loss of an earlier year;
(c) exemption from tax;
(d) the application of credits or rebates; or
(e) the claiming of allowances or deductions (including
depreciation and amortization deductions) no tax is payable or
paid by the person for a tax year or the tax payable or paid by
the person for a tax year is less than 7
[
8
[the percentage as
specified in column (3) of the Table in Division IX of Part-I of
the First Schedule] ] of the amount representing the person‘s
turnover from all sources for that year:
For further understanding go through CHAPTER IX (MINIMUM TAX) [113] and PART V (Advance Tax Paid by the Taxpayer) of the Income Tax Ordinance, 2001.