The Inland Revenue Department has issued a new circular outlining the procedure for resident individuals who earn interest income subject to Advance Income Tax (AIT) but have no taxable income.
According to Circular No. SEC/2025/E/03 dated March 28, 2025, individuals whose total assessable income does not exceed Rs. 1.8 million per year and who earn interest from banks or financial institutions can submit a self-declaration to request relief from the 10% AIT deduction.
This measure, based on instructions from the Treasury, aims to ease the tax burden on low-income earners and is subject to formal amendments to the Inland Revenue Act.
