INCOME SUPPORT LEVY

Income Support Levy

Income Support Levy Act, 2013 was introduced through Finance Act, 2013. Rules have now been formulated by the Federal Board of Revenue through SRO 904(I)/2013 dated: 8th October 2013. Salient features of which are as under:

1)    The Levy required to be paid under section 4 of the Income Support Levy Act, 2013 shall be calculated according to the valuation made under rule 5 of the Computation and Payment Form specified in the Schedule. The said Form shall be filled on the basis of the wealth statement under section 116 of the Income Tax Ordinance, 2001.

2)    The person liable to pay the Levy shall do so on or before the due date of filing of return i.e. 31. 10.2013. In case, a person is not required to file return, he shall pay the levy along with the wealth statement, at the time prescribed in sub-section (4) of section 118 of the Income Tax Ordinance, 2001.

3)    The Levy shall be payable in respect of net movable assets, exceeding one million rupees, held by a person on the last day of the tax year i.e. 30.06.2013.

4)    Net movable assets are to be valued at cost instead of market value. It means the aggregate value of movable assets declared in the wealth statement as reduced by the aggregate value of all the liabilities by the person on the closing date of the tax year.

5)    Where the liability relates exclusively to a movable asset, it is to be claimed as a straight deduction from aggregate value of movable assets.

6)    Where the liability relates to both, movable and immovable assets, and cannot be determined for the movable assets, the liability to be allowed shall be calculated by the following formula:

(A/B) x C

Where:

A.  Is the aggregate value of movable assets;

B.  Is the aggregate value of movable and immovable  assets; and

C.  Is the aggregate value of all liabilities which relate to movable and

immovable assets.

7)    The Levy shall be payable as determined in Computation and Payment Form as specified in the Schedule. This Schedule is in fact return as well as payment challan of the Levy.

8)    In case, the return is to be filed electronically, Computation and Payment Form shall be furnished electronically and where a person is not required to file the return electronically, Computation and Payment Form shall be furnished in the manner in which return is to be filed.

9)    Where a person is required to file a wealth statement under sub-section (1) of section 116 of the Income Tax Ordinance, 2001, the Levy shall be payable manually accompanied by the wealth statement.

10)        Schedule to the Rules is as under:-

 

SCHEDULE

(See rule 3)

COMPUTATION AND PAYMENT FORM

FOR INCOME SUPPORT LEVY

UNDER INCOME SUPPORT LEVY ACT, 2013

Taxpayer’s Name NTN
CNIC Tax Year
Address RTO/LTU
            MOVABLE ASSETS SUBJECT TO INCOME SUPPORT LEVY (ISL)

COMPUTATION

Sr.#

Description

Value

1

Total Value of Movable Assets as declared in Wealth Statement

2

Liabilities relating to movable assets only (See rule 5(4)

3

Liabilities relating to both movable assets and immovable assets

4

Proportionate Liabilities relating to movable assets (See rule 5(5)

5

Total Liabilities to be claimed (Sr. 2+Sr. 4)

6

Net Movable Wealth (Sr. 1 – Sr. 5)

7

Movable Wealth Exempted from ISL 1,000,000

8

Movable Wealth subject to ISL (Sr. 6 – Sr. 7)

9

Income Support Levy Payable (Sr. 9 = Sr. 8*0.5%)

PAYMENT

Amount paid (in words) ____________________________________________

Date (dd/mm/yy)  ______________ Signature _________________________

Note:  Bank will issue a computerized payment receipt (CPR, after collection of Income Support Levy.

 

 

 

 

 

 

 

 

 

 

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