FBR Chairman Rashid Mahmood Langrial has reportedly taken notice of advance income tax notices being issued to salaried individuals, with a possible move to provide relief to employees whose only source of income is their salary.
Under the proposed measure, salaried taxpayers who have no other income may no longer receive quarterly advance tax notices. However, individuals earning through additional sources could remain liable to pay adjustable advance tax, subject to the applicable tax rules.
The reported proposal also seeks to ensure that any excess advance tax collected from salaried individuals is adjusted immediately, reducing the financial burden on employees who may have paid more tax than required.
Advance tax is generally collected during the tax year and adjusted against a taxpayer’s final tax liability. For salaried individuals whose tax is already deducted at source by their employers, additional advance tax demands may create financial difficulties if their income does not justify further payments.
The proposed change aims to make tax collection more convenient for salaried employees and prevent unnecessary advance tax demands. It could also help improve cash flow for individuals who depend entirely on their monthly salaries to meet household expenses.
However, the reported measure remains subject to confirmation and any applicable official notification. Further details are needed to establish when the proposed changes would take effect and which taxpayers would qualify for the relief.
