20000302

10 pc withholding tax on savings schemes being refunded

ISLAMABAD: The Central Directorate of National Savings has asked the general public to claim their refunds of 10 percent withholding tax, which was deducted on various savings schemes last year.

The 10 percent withholding tax on Defence Savings Certificate, Special Savings Certificate/Account, Mahana Amdani Account and Savings Account, imposed on September 3, 1999 was withdrawn on December 16, 1999 on the directives of the present government.

The National Savings Centres are refunding the 10 percent withholding tax since January 17, 2000. "Those who have still not received the amount should immediately contact their saving centres concerned", said an official of the National Savings Centre.

This tax was being deducted under the Central Board of Revenue (CBR) notification dated September 3, 1999.

But the Chief Executive, General Pervez Musharraf, during his address to the nation on December 15 had announced that the 10 percent withholding tax on income from national savings scheme is being withdrawn and refund will be made to those who have encashed their savings from September 1999 to-date.

The refund, the official said, should be claimed as soon as possible, otherwise the claimants will have to follow the normal procedure of refunds through the Deputy Commissioner of Income Tax concerned.

"The refund is being made instantly to the claimants and in order to avoid misappropriation, amount exceeding Rs 5,000 are being refunded through the cheque," he added.

The Central Directorate of National Savings is taking all necessary measures to ensure a smooth refunds to save its clients from hassle of getting them refunded through CBR authorities, he said. APP