The Inland Revenue Department has issued a new circular detailing the procedure for resident individuals with interest income subject to Advance Income Tax (AIT) but no taxable income.
As per Circular No. SEC/2025/E/03, dated March 28, 2025, individuals whose total assessable income does not exceed Rs. 1.8 million per year can submit a self-declaration to banks or financial institutions to seek exemption from the 10% AIT deduction.
This measure, introduced under Treasury instructions, aims to reduce the tax burden on low-income earners and will be formally incorporated into the Inland Revenue Act through future amendments.
