2012 PTD 475

Case Laws / Head Notes / Paras

---Profit on debt---Defence Saving Certificates---Deduction of tax at source---Taxpayer contended that tax withholding was unjustified as the Defence Saving Certificates held in each account were within the exemption threshold---Department contended that tax withholding rate on profit on debt was 10%; and deposits below Rs.1,50,000 were exempt from withholding tax and as the complaint was against officials of Directorate of National Savings, the Department was not concerned in the improper deduction of withholding tax at the time of encashment of Defence Saving Certificates held by the complainant and his family members---Validity---Tax was required to be withheld @10% under S.151(1)(a) of the Income Tax Ordinance, 2001 since tax year 2003, and the same constituted final discharge of tax l...