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Tuesday, June 25, 2024  
18 Dhul-Hijjah 1445  

Calculator: How much tax you will pay on bank withdrawals

FBR has started collection of advance income tax on bank withdrawals

The Federal Bureau of Revenue has started collecting an advance tax of 0.6% on non-filers withdrawing funds from the bank.

The tax applies to people who are not included on the active taxpayers list (ATL). The active tax payers list includes those who regularly file tax returns. If you were a filer in the past but stopped filing returns, your name would be removed from the ATL.

A circular issued by the Federal Board of Revenue (FBR) said that the tax rate will be zero on withdrawing money from the bank up to Rs50,000.

However, withdrawals above Rs50,00 per day will be taxed at the rate of 0.6% for non-filers.

According to FIBR, a tax of Rs 330 will be charged on a withdrawal of Rs 55,000. While non-filers withdrawing Rs75,000 will be taxed Rs450.

You can use our calculator to estimate the tax amount you will be paying on bank withdrawals if you are a non-filer.

Tax Calculator

According to the circular, this tax will not be applied to the federal and provincial governments. Similarly, foreign diplomats or diplomatic missions in Pakistan will also be exempted from the tax.

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