The concept of withholding tax on cash withdrawal (Banking Tranaction) is when ever customer withdraw their money more than 50,000/= Rupees from their account in a single day than he will be charged tax, Now it is depend on whether the customer is Filer or Non-Filer, If he is Filer than he will be charged .3% Tax and if he is Non-filer than he will be Charged .6% Tax.
Lets take an example of both Cases Filer and Non-Filer
Mr. X is a Filer and he wants to withdraw 175,000/= Rupees from their bank account in single day because he want to purchase goods for their Shop, As we already discussed Mr. X is a Filer and According to our Tax Structure he will be Charged .3%.
Now Lets find the amount of withholding tax in Mr. X case,
Tax Rate: .3%
Withholding Tax: 175,000*.3% = 525/=
Mr. Y is a Non-Filer and he want to purchase laptop for his personal use, the price of that laptop is 80,000/= Rupees, So he wants to withdraw 80,000/= Rupees from his bank account, According to our Tax Structure Mr. Y will be charges .6% because he is a Non-Filer.
Now Lets find the amount of withholding tax in the case of Mr. Y
Tax Rate: .6%
Withholding Tax: 80,000*.6%= 480/=
"Keep one thing in mind that Banking Transaction below the amount of 50,000/= Rupees in a single will not be charged any amount of Tax whether the person is Filer or Non-Filer "
For Latest Updates Regarding Withholding Tax visit FBR Official Website.