SAHIWAL: The local administration of the Sahiwal Comsats campus has been accused of evading income tax as it failed to collect admissible tax from its employees.

Federal Board of Revenue (FBR) rules say every withholding agent is required to deposit the tax collected or deducted under the relevant section of the Income Tax Ordinance 2001, with the treasury along with a statement which requires filing quarterly statement under Section 165 of the Income Tax Ordinance 2001.

The deputy commissioner, Inland Revenue (Unit 01), Sahiwal Zone, raised the issue with theSahiwal Campus admin and told it that 25pc rebate for full time teachers or researchers has already been omitted by the Finance Act 2022, therefore, such rebate must immediately be discontinued with.

It was further communicated that in case of non-compliance, recovery proceedings u/s 161 of the Income Tax Ordinance 2001 shall be initiated against the respective withholding agent.

Taking notice of the matter, the Deputy Treasurer, CUI Principal Seat in Islamabad, in a letter, says there is no 25 per cent rebatefor full time teachers and researchers. He further advised all heads of accounts to deduct tax against salary income as per the applicable and operative laws.Sources added Masoodul Hasan, Officer Inland Revenue, Sahiwal, in a letter directed the Sahiwal Campus to stop giving tax rebate to all such officials. Moreover, the concerned tax office has issued notice to the head of finance department of CUI, Sahiwal campus, for providing complete record related to the tax deducted.

Sources said the FBR will determine the exact amount of financial loss caused to the exchequer. Prof.

Dr. Nazir Ahmed, Directed, Sahiwal Campus, told Dawn the FBR had asked us to withdraw the rebate which would be implemented accordingly. `Campus has been deducting income tax as per direction of the principal seat of CUI,` he further added.