MINIMUM TAX IN CASE OF CERTAIN PERSONS

The following taxpayers have to pay minimum tax.

(a) A resident company.

(b) An individual (having turnover of fifty million rupees or above in the tax year 2009 or in any subsequent year);

(c) An association of persons (having turnover of fifty million rupees or above in the tax year 2007 or in any subsequent year).

If the above entities have to pay no tax for any reason such as

(a) a loss occurs due to excess of expenditure over revenue;

(b) due to setting off a loss of earlier year,

(c) exemption of tax,

(d) application of reliefs, credits or rebates;

(e) claiming of any allowance or deduction;

or the tax payable by the persons is less than 0.50% of their turnover, this section will apply and they will have to pay tax at the following rates:

(a) If no tax is otherwise payable @ 0.50% of the turnover,

(b) If the tax otherwise payable is less than 5% of turnover  Dfa Ho the difference between the tax otherwise payable and the amount calculated @ 0.50% of the turnover whichever is higher shall become payable.

(c) If the amount of tax paid @ 0.50% of the turnover is more than actual tax payable, the excess amount of tax can be carried forward for adjustment against normal tax liability for next five tax years.