deduction of tax at source

deduction of tax at source

the process whereby the payer of, e.g. interest, deducts income tax at the basic rate from the payment and accounts for it to the HM Revenue and Customs. It can be compared with the system of Pay-As-You-Earn (PAYE), whereby employers are required to deduct income tax from payments of wages or salaries.
References in periodicals archive ?
Is there any way of avoiding deduction of tax at source? Her income is around ?40,000 a month.
The e-commerce entities should not be allowed to remit funds outside India without deduction of tax at source on behalf of offshore retailers.
Apart from this, the EAB also demanded deduction of tax at source as a final tax liability not as minimum tax side by side fixing the tax at source for the terry towel and home textile sectors at 0.25 percent and thus keep the rate for at least 5 years.
Provisions regarding deduction of tax at source also need to be abolished because they are against the provisions of Article ii of the Constitution of Islamic Republic of Pakistan in that forcing payers to deduct tax at the time of payment, deposit the same into Government Treasury and submit statements to the Government at regular intervals (monthly, quarterly and yearly) amounts to forced labor which is prohibited by the above mentioned Constitutional provision.
Many taxpayers do not need to fill in a tax return because the Pay As You Earn system and deduction of tax at source on many types of income and savings means that they already pay the right amount of income tax.
Also, the salary of an employee is subject to deduction of tax at source and tax applicable on the entire salary is deducted by the employer for deposit in the government treasury.
To counter this, the government extended the nil rate of tax to the first PS5,000 of savings income from April 2015, thereby enabling a greater number of individuals to register to receive interest without deduction of tax at source rather than to seek a repayment of tax from HMRC.
The refund arises, as a result of excess deduction of tax at source under sections 148, 153, 231A, 231B, 234, 235 and 236 on imports; supplies, cash withdrawals from Banks, registration of motor vehicle, payment of motor vehicle token tax, and in electricity and telephone / mobile phone bills.
Non- deduction of tax at source from huge amount of commission paid to agents and the interest paid on maturity of deposits
199 constitutionalpetition Re insurance premiums paid by Pakistni company to foreign non-resident insurance companies not having Permanent Establishment in Pakistan, butbelonging to countries having Agreement with Pakistan for Avoidance of double Taxation non- deduction of tax at source on such re- insurance premiums remitted by Pakistani company to such foreign companies after insertion of S.152(1AA) in income tax Ordinance , 2001, by finance act 2008 Demand of such tax by department validity -- -agreement of avoidance of double taxation contained a condition that no tax would be charge from such foreign company prior to amendments introduced by Finance Act.
Decision to this effect was made by the FTO on a complaint filed by Muhammad Iqbal Sindhu Proprietor Sindhu Industry Street Heera Washing Machine Near Samanabadi Chungi Gujranwala verses the Secretary Revenue Division Islamabad against deduction of tax at source in utility bills and at the time of motor vehicle registration and cash withdrawals from bank and the resultant reduction in the refund claimed.
HMRC will therefore be writing to tell all the contractors that had previously paid him for work within the CIS that all payments made to him after March 14, 2008 in respect of labour, should be subject to deduction of tax at source of 20 per cent.