Tax term

Adjustable tax

Tax that may be credited against the taxpayer’s final liability.

Setting withheld tax against the liability computed in the return is what adjustable means, so the whole idea runs on evidence and correct placement. The return has to carry the amount, the tax year and the same identifier the agent reported, which is why a withholding certificate issued for 2025-26 cannot support a credit claimed in a 2026-27 return. The numbers make the effect plain. On a 2026-27 salary of Rs 1,800,000 the schedule gives Rs 72,000, so Rs 72,000 of reported withholding settles the estimate, while Rs 78,000 leaves a Rs 6,000 difference to explain before any refund expectation. Frequent mistakes are transposing the identifier, claiming against tax the agent deducted but never deposited, and counting one receipt twice because it appears on both a slip and a bank statement. Keep the official record, reconcile it with the annual certificate, and verify status with FBR.

Check the legal meaning in context and against the relevant tax year.