FBNQuest’s Post

The most recent update from the National Bureau of Statistics (NBS) on company income tax (CIT) shows that total CIT receipts into the federation’s account declined by -35% q/q to NGN1.1trn in Q4 ’23. However, on a y/y basis, the total collections increased significantly compared to the NGN753.9bn collected in the year-earlier period. Although CIT receipts collected from domestic sources declined by -18% q/q to NGN533.9bn, the marked y/y reduction in Q4 was due to a significant drop in foreign CIT collections, which almost halved q/q to NGN596.1bn compared with NGN1.1trn in the previous quarter. It is also worth mentioning that the data is compiled by the NBS from data provided by the Federal Inland Revenue Service (FIRS). #FBNQuestResearch

Capital Gain Tax Govt proposes an amendment to the Finance Billl, 2024 to provide relief for real estate under #LTCG regime 1. Govt to allow taxpayers to avail either a lower rate of 12.5% without #indexation or a higher 20% rate with indexation if the property is acquired before July 23, 2024 2. Relief proposed in respect of taxation of immovable property: In the case of the transfer of a long-term capital asset, being #land_or_building or both, by an #individual_or_HUF, acquired before July 23, 2024, the taxpayer can compute their taxes under the new scheme @ 12.5% without indexation and old scheme @ 20% with indexation and pay such tax which is lower of the two.

Govt *moves Amendments to Finance Bill No.2 2024*: Amendments Include: To *allow taxpayers to avail either lower rate of 12.5 percent without indexation or higher 20 percent rate with indexation if property acquired prior to July 23, 2024*. Relief proposed in respect of taxation of immovable property: In the case of transfer of a long-term capital asset, being land or building or both, by an individual or HuF, which is acquired before the 23rd day of July, 2024, the taxpayer can compute his taxes under the new scheme [12.5% without indexation] and old scheme [20% with indexation] and pay such tax which is lower of the two #Tax

According to the latest Income Tax Circular No. 7/2024, the CBDT has extended the due dates for filing Form 10A and 10AB up to 30th June, 2024, crucial for registration under sections 12A and 80G. This development offers significant relief to trusts and section 8 companies that have faced challenges due to expired deadlines. Key points to note: Extended Due Dates: The extension applies to: Applications for provisional registration under sections 12A or 80G. Conversions from provisional to final registration under sections 12A or 80G. Beneficiaries: Organizations that missed the earlier deadlines for either applying for provisional registration or completing the conversion process now have an opportunity to regularize their status without adverse consequences. Impact: This extension is particularly beneficial as it prevents penalties or procedural setbacks that could arise from missed deadlines, ensuring compliance and continuity for eligible entities. Don't miss the deadline!!!!

Breaking: FinMin may postpone Section 43B(h) by 1 year The Finance Minister Nirmala Sitharaman may postpone Section 43B(h) by 1 year. Finance Ministry is considering deferring the application of Rule 43B (h) of the Income Tax Act, which requires payments to micro, small, and medium- sized enterprises (MSMEs) within 45 days, according to sources. The proposed postponement is scheduled to last a full financial year, with the rule set to take effect on April 1, 2025, sources said. The Finance Act of 2023, which revised the Income Tax Act, added a clause (h) to Section 43B to ensure timely payments to MSMEs. #msme #finance #section43b #minister #cma

Income tax has introduced new section 43B(h) w.e.f. 1-4-24. The salient feature are as under 1. All MSME party payment must be done within 15 days provided  there is no agreement with MSME party 2. Where there is agreement with MSME party , payment must be made maximum within 45 days or earlier as per agreement 3. All Outstanding with MSME as on 31/3/24 must be cleared in 15 days If payment is not made as specified above entire purchase/expenses of MSME where such payment is not made within specified days will be added to the income.

**!! Attention Taxpayer !!** **Time Limit for payment under MSME Development Act 2006* Section 15 of MSME Development Act 2006 (MSMED Act) mandates payments to micro and small enterprises within *45** days in case of written agreement and **15** days in case of no-written agreements. **Interest on Delayed Payment under MSME Development Act 2006** Section 16 of the MSMED Act provides, if payment is not made within the time limit specified under section 15, then the interest payable shall be three times of the bank rate notified by the RBI. Also, Interest on delayed payment shall **not** be allowed as deduction under Income Tax Act. **Disallowance of Expenditure under Income Tax Act, 1961** Any sum payable by the assessee to a micro or small enterprises, beyond the time limit specified in section 15 of the MSMED Act shall be allowed as deduction only on **actual payment**.

The Federal Board of Revenue (FBR) has allowed a reduced rate of income tax on profit on debt for the year 2024. This decision comes as part of the updated Income Tax Ordinance, 2001, specifically tailored for the tax year 2024. As outlined in the amended ordinance, the FBR has greenlighted a reduced tax rate on gains arising from profit on debt. The specifics state that the rate of tax to be deducted under sub-section (2) of section 152, pertaining to payments from profit on debt to a non-resident individual without a permanent establishment in Pakistan (excluding those covered under clauses 78 and 79 of Part I of the Second Schedule), shall stand at 10 percent of the gross amount paid. Follow us and visit our website: https://faco.pk Email us: facotax@gmail.com Contact us: +92-331-9265065 | 051-8898690 #faco #facotax #business #pakistan #taxnews #taxreturn #taxservice #tax #taxes #taxtips #taxplanning #taxpreparation #taxpreparationservices #bookkeeping #bookkeepingservices #cloudaccounting #accounting #accountingservices #trending

High earners are subject to an additional tax called the Alternative Minimum Tax. To calculate alternative minimum taxable income (AMTI), some non-taxable income and expenses are added back. Those non-taxable income and deductions are known as adjustments and preferences. What is the order to calculate AMT (Alternative Minimum Tax)? Calculate AMTI. Add-Back not-taxable and disallowed deductions for the to calculate for AMT purpose. Reduce AMT exemptions. Calculate the alternative minimum tax based on the tax rate selected for the income threshold. Note: If you are a student or connected with accounting and taxation, regardless of where you are currently located, we can work together and grow together. There is a stock option available.

The proposed changes in income tax rates for non-salaried individuals and AOPs introduce significant increases for higher income brackets. While the tax rate remains unchanged for incomes up to Rs. 600,000, the rate for incomes exceeding Rs. 600,000 up to Rs. 800,000 is set to double from 7.5% to 15%. For incomes above Rs. 5,600,000, the rate will rise from 35% to 45%. These adjustments aim to increase the tax burden on higher income earners. Landline: +92 21 372 33983 WhatsApp: +92 329 218 5290 Website: www.kamtaxpro.com #IncomeTax #TaxRates #NonSalariedIndividuals #AOPs #TaxIncrease #HigherIncomeTax #TaxChanges #PakistanTax #FinancialPlanning #TaxBrackets #KamTaxPro