Tax practitioners have urged the Federal Board of Revenue (FBR) to issue Free Tax Numbers (FTNs) to persons who are not liable for withholding tax.
In its proposals for budget 2021/2022, the Karachi Tax Bar Association (KTBA) said. That Section 49(3) of the Income Tax Ordinance, 2001 has specified. That payment received by the Federal, Provincial or a Local Government shall not liable to any deduction of advance tax.
FBR should issue a separate list of Free Tax Numbers (FTNs). Who are not liable to tax withholding as provided under section 49(3) of the Ordinance through a S.R.O.
The KTBA said that this will assist the withholding agents and save considerable time in deciding. Whether a respective FTN holder required to produce exemption certificate or not.
What is Free Tax Number ?
“FTN” means Free Tax Number issued by the Federal Board of Revenue to persons who are otherwise exempt from holding National Tax Number (NTN) for the purposes of identification