Information on Advance Tax for Parents

‘Filer’ as defined in the Ordinance means a taxpayer whose name appears in the active taxpayers’ list issued by the Federal Board of Revenue from time to time or is a holder of a taxpayers’ card. A ‘Non-Filer’ is a person who is not a filer.

According to Section 2361, every educational institution is required to collect advance income tax at the rate of 5% on the fee paid. The person responsible for preparing monthly, bimonthly or quarterly fee vouchers shall also charge withholding tax in case the fee exceeds Rs200,000 annually

The information of tax filer status will be retrieved from FBR Active Taxpayer List before every challan issuance. This source file will be used to identify tax filing status of all individuals.

A List of Active Taxpayers is available on the FBRs website and can be accessed through the following link: Home > e-Services > Active Taxpayer List (Income Tax)

It is further informed that only a National Tax Number (NTN) certificate is not sufficient proof for exemption in advance tax.

Updation and communication thereof; of tax filing status at FBR portal is the responsibility of the parent. The school will not be responsible for delay in updation of filer status.

Once challans are issued and the status of an individual is updated to filer before payment of challan, they can request the school office to issue a fresh challan.

(the updated challan would be reissued by a finance resource at CSO level for such instances and not at the school level).

The advance tax once submitted is not refundable as it is deposited with FBR from the school accounts.

If the parent is a non-resident, then necessary documents as advised by the school office need to be provided for exemption from advance tax.