ISLAMABAD: The Anti-Benami Zones established by the Federal Board of Revenue (FBR) have successfully detected benami assets totaling Rs7.4 billion, following thorough investigations in Karachi, Islamabad, and Lahore.
(more…)Day: December 23, 2020
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FPCCI demands return filing date extension
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday demanded the tax authorities to extend the last date for filing income tax returns for tax year 2020.
In a message, Mian Anjum Nisar, President, FPCCI said that the date should be extended to facilitate the taxpayers considering spread of coronavirus.
The last date for filing income tax returns for tax year was expired on December 08, 2020. Many taxpayers were unable to meet the deadline and are now receiving notices from the Federal Board of Revenue (FBR) to file their returns along with fine and penalty.
Further, the FBR notices also contain warning of prosecution in case the returns are not filed along with fine and penalty.
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FBR develops e-module for settlement of assessment cases
ISLAMABAD: The IT Wing of Federal Board of Revenue (FBR) has developed e-module for settlement of assessment cases under Section 122D of Income Tax Ordinance, 2001.
In an office memo issued to chief commissioners Inland Revenue (CCIR) of Large Tax Offices (LTOs), Medium Tax Office (MTO), Corporate Tax Offices (CTOs) and Regional Tax Offices (RTOs), the FBR said that e-module of agreed assessment under Section 122D of Income Tax Ordinance, 2001 is available in IRIS.
The FBR said that the option to avail the opportunity of agreed assessment is visible to taxpayers, who have been issued show cause notices under Section 122(9) of the Ordinance.
The FBR directed the CCIRs to sensitize unit officers about the e-module and also aware legal fraternity and taxpayers about this addition in IRIS.
The FBR further directed the CCIRs to provide information in respect of taxpayers, who opted for agreed assessment by 5th of every month along with details of number of cases applied, number of cases finalized and demand created in settlement cases.
The CCIRs have also been directed to form assessment oversight committees at their tax offices and send details to the FBR by January 05, 2021.
The Section 122D of the Ordinance has been introduced through Finance Act, 2020. Prior to the Finance Act, 2020 there was no mechanism under the Ordinance for negotiated settlement of tax disputes before finalization of an assessment/amended assessment.
In order to facilitate taxpayers, reduce burden on the formal appeal system and effecting speedy recoveries, a new section 122D enabling agreed assessment has been inserted through the Finance Act, 2020.
If a taxpayer intends to settle his case on or after receipt of a notice for amendment of assessment under section 122(9) of the Ordinance, he shall have the option of filing an offer of settlement in the prescribed form before the Assessment Oversight Committee for resolution of his dispute.
In addition, the taxpayer shall also be obliged to file a reply in response to notice for amendment of assessment under section 122(9) of the Ordinance before the concerned Commissioner.
The Assessment Oversight Committee shall comprise the Chief Commissioner Inland Revenue, the Commissioner Inland Revenue and the Additional Commissioner Inland Revenue having jurisdiction over the taxpayer.
The Committee shall examine the offer of settlement and may also call for the record of the case. Moreover, the Committee shall have the mandate to accept or modify the offer of settlement of the taxpayer through consensus after affording the taxpayer an opportunity of being heard.
In case, the Committee’s decision is acceptable to the taxpayer, the taxpayer shall be obliged to deposit the amount of tax payable, including penalty and default surcharge, in accordance with the decision of the committee pursuant to which the Commissioner shall amend the assessment in accordance with the decision of the committee.
Moreover, in such instances, the taxpayer shall forego his right to file appeal against such amended assessment.
In case, the Committee is unable to arrive at a consensus in respect of the offer of settlement or the taxpayer is not satisfied with the decision of the Committee, the concerned commissioner shall decide the case on the basis of reply filed by the taxpayer in response to notice of amendment issued under section 122(9) of the Ordinance.
Cases involving concealment of income or interpretation of question(s) of law having effect on other cases have been ousted from the purview of the agreed assessments under section 1220 of the Ordinance.
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FBR withdraws regulatory duty on cotton import
The Federal Board of Revenue (FBR) has taken a significant step to boost the textile industry by withdrawing the five percent regulatory duty on the import of cotton yarn.
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Share market ends up by 181 points amid buying activity
KARACHI: The share market gained 181 points on Wednesday as buying activity witnessed during the day.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) Index closed at 43,088 points as against previous day’s close of 42,907 points showing an increase of 181 points.
Analysts at Arif Habib Limited said that after posting a loss of around 1200 points since last Friday, market moved cautiously taking cue from stability in international crude oil prices as well as renewed buying activity in Cement sector scrips that added a total of 309 points during the session and closing +181 points.
Besides Cement, Investors opted for Banks (HBL), O&GMCs (PSO), E&P (OGDC & PPL) and Engineering / Steel (ISL, INIL) that helped stage recovery in Index.
Rollover week will end tomorrow, however, the pertinent scrips (UNITY, TRG and NETSOL) have largely covered ground to cause any concern. Among scrips, PRL topped the volumes with 26.9 million shares, followed by MLCF (17.7 million) and TRG (16.2 million).
Sectors contributing to the performance include Cement (+81 points), Autos (+19 points), Engineering (+18 points), Banks (+17 points) and Insurance (+17 points).
Volumes declined from 561.8 million shares to 378.9 million shares (-33 percent DoD). Average traded value also declined by 22 percent to reach US$ 110.5 million as against US$ 140.9 million.
Stocks that contributed significantly to the volumes include PRL, MLCF, TRG, ICIBL and UNITY, which formed 24 percent of total volumes.
Stocks that contributed positively to the index include MLCF (+21 points), HBL (+20 points), LUCK (+18 points), ENGRO (+18 points) and CHCC (+13 points). Stocks that contributed negatively include MARI (-17 points), KTML (-10 points), POL (-10 points), FFC (-10 points) and MEBL (-9 points).
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Rupee strengthens by 13 paisas on dollar supply
KARACHI: The Pak Rupee gained 13 paisas against the dollar on Wednesday on sufficient supply of the greenback to meet import and corporate demands, dealers said.
The rupee ended Rs160.55 to the dollar from the previous day’s close of Rs160.68 in the interbank foreign exchange market.
The dealers said that the rupee was appreciated after sufficient supply of the dollar in the market and it offset the demand for import and corporate payments.
They said that the market had positively responded to current account surplus.
The current account posted $1.64 billion surplus for the first five months of the current fiscal year as compared with a current account deficit of $1.74 billion in the corresponding period of the last fiscal year.
The dealer said that the new type of coronavirus detected in the UK also spread fears across the globe. The importers are also cautious in making new orders amid the discovery of new type of the COVID.
The currency experts hoped that the local unit would make gains in coming days despite year ending owing to improved economic indicators.
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Tax rate at 15 percent applicable on profit on debt: FBR
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday said that the general rate of tax is 15 percent on yield on investments. However, it is reduced at 10 percent where annual profit is below Rs500,000.
The FBR issued Income Tax Circular No. 07 of 2020 to clarify tax rate under Section 151 of the Income Tax Ordinance, 2001.
The FBR said: “General rate of tax deduction on profit on dent under Section 151 of the Income Tax Ordinance, 2001 is 15 percent of the profit.
“However, provision to the Division IA of the Part III of the First Schedule to the Income Tax Ordinance, 2001, provides that tax rate shall be 10 percent in case where the taxpayer furnishes a certificate to the payer of the profit on debt that during the tax year, total yield or profit payable in this case shall remain at Rs500,000 or less.”
The FBR said that queries had been received regarding the nature or format of the certificate.
“The required certificate is to be furnished by the recipient of the profit on debt to the payer of such profit to the effect that total profit on debt received/receivable during the tax year from all investments in his case shall not exceed Rs500,000,” the FBR said, adding that the requisite certificate can be submitted on plain paper.
According to the withholding tax card for tax year 2021 issued by the FBR, the profit on debt may be on account of deposit, account or a certificate under the National Saving Schemes or Post office savings account.
Besides, the same rates shall be applicable on profit on debt paid by a banking company or financial institution on account or deposit maintained.
Furthermore, the tax rates are also applicable on profit on bonds, certificates, debentures, securities or instruments of any kind (other than loan agreements between borrowers and banking companies or development financial institutions.
The tax rate of 15 percent shall be increased by 100 percent to 30 percent for persons not appearing on Active Taxpayers List (ATL).