Pkrevenue.com

Month: December 2020

  • Rupee gains 15 paisas on improved inflows

    Rupee gains 15 paisas on improved inflows

    KARACHI: The Pak Rupee gained 15 paisas against the dollar on Friday owing to significant inflows of workers’ remittances and improved foreign exchange reserves of the country.

    The rupee ended Rs160.14 to the dollar from previous day’s closing of Rs160.29 in the interbank foreign exchange market.

    Currency dealers said that positive sentiments prevailed in the foreign exchange market owing to improved foreign exchange reserves and inflows of workers remittances.

    The liquid foreign exchange reserves of the country have increased by $160 million to $20.402 billion by week ended December 04, 2020, State Bank of Pakistan (SBP) said on a day earlier. The foreign exchange reserves of the country were at $20.242 billion by week ended November 27, 2020.

    During the first five months of FY21, workers’ remittances have reached an unprecedented level of US$ 11.77 billion, 26.9 percent higher than the same period last year.

  • Tax Year 2020: return may be filed on payment of penalty

    Tax Year 2020: return may be filed on payment of penalty

    ISLAMABAD: A return of income and a wealth statement can be filed now after payment of fine and penalty as prescribed in the statute.

    The deadline to file income tax return for tax year 2020 was December 08, 2020. The FBR has not extended the date for filing the return of income and wealth statement despite demands from various quarters while pointing out various reasons.

    A large number of individuals and other classes of taxpayers has failed to file their returns by due date. The filing of income tax return is mandatory on classes of persons as defined under Section 114 of the Income Tax Ordinance, 2001.

    “Section 114. Return of income. — (1) Subject to this Ordinance, the following persons are required to furnish a return of income for a tax year, namely:–

    (a) every company;

    (ab) every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year;or

    (ac) any non-profit organization as defined in clause (36) of section 2;

    (ad) any welfare institution approved under clause (58) of Part I of the Second Schedule;

    (ae) every person whose income for the year is subject to final taxation under any provision of this Ordinance;

    (b) any person not covered by clause (a), (ab), (ac) or (ad) who,—

    (i) has been charged to tax in respect of any of the two preceding tax years;

    (ii) claims a loss carried forward under this Ordinance for a tax year;

    (iii) owns immovable property with a land area of five hundred square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;

    (iv) owns immoveable property with a land area of five hundred square yards or more located in a rating area;

    (v) owns a flat having covered area of two thousand square feet or more located in a rating area;

    (vi) owns a motor vehicle having engine capacity above 1000 CC;

    (vii) has obtained National Tax Number; or

    (viii) is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds rupees five hundred thousand;

    (ix) is a resident person registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan

    or Institute of Cost and Management Accountants of Pakistan ; or

    (x) is a resident person being an individual required to file foreign income and assets statement under section 116A.

    (1A) Every individual whose income under the head ‘Income from business’ exceeds rupees three hundred thousand but does not exceed rupees four hundred thousand in a tax year is also required to furnish return of income from the tax year.”

    The mentioned above classes of taxpayers except for companies are required to file annual return by September 30 and the last date for companies is December 31.

    The individuals or companies required to file return by September 30, the date was extended up to December 08, 2020 for tax year 2020.

    In case such persons have failed to file their return they now have to pay late filing surcharge as prescribed under Section 182 of the Income Tax Ordinance, 2001.

    Under Section 182:

    Where any person fails to furnish a return of income as required under section 114 within the due date.

    Such person shall pay a penalty equal to 0.1% of the tax payable in respect of that tax year for each day of default subject to a maximum penalty of 50% of the tax payable provided that if the penalty worked out as aforesaid is less than forty thousand rupees or no tax is payable for that tax year such person shall pay a penalty of forty thousand rupees:

    Provided that If seventy-five percent of the income is from salary and the amount of income under salary is less than five million Rupees, the minimum amount of penalty shall be five thousand Rupees.

    Where any person fails to furnish wealth statement or wealth reconciliation statement then such person shall pay a penalty of 0.1% of the taxable income per week or Rs.100,000 whichever is higher.

    The late filers will also require to pay a fee for appearance in Active Taxpayers List (ATL) for tax year 2020, which will be issued on March 01, 2021.

    Section 182A. Return not filed within due date.—(1) Notwithstanding anything contained in this Ordinance, where a person fails to file a return of income under section 114 by the due date as specified in section 118 or by the date as extended by the Board under section 214A or extended by the Commissioner under section 119, as the case may be, such person shall—

    (a) not be included in the active taxpayers’ list for the year for which return was not filed within the due date:

    Provided that without prejudice to any other liability under this Ordinance, the person shall be included in the active taxpayer ‘ list on filing return after the due date, if the person pays surcharge at Rupees-

    (i) twenty thousand in case of a company;

    (ii) ten thousand in case of an association of persons;

    (iii) one thousand in case of an individual.

    Persons fail to comply with filing requirement can face harsh action including imprisonment.

    Section 191. Prosecution for non-compliance with certain statutory obligations. —(1) Any person who, without reasonable excuse, fails to —

    (a) comply with a notice under sub-section (3)and sub-section (4) of section 114 or sub-section (1) of section 116; shall commit an offence punishable on conviction with a fine or imprisonment for a term not exceeding one year, or both.

    (2) If a person convicted of an offence under clause (a) of sub-section (1) fails, without reasonable excuse, to furnish the return of income or wealth statement to which the offence relates within the period specified by the Court, the person shall commit a further offence punishable on conviction with a fine not exceeding fifty thousand rupees or imprisonment for a term not exceeding two years, or both.

    Section 192: Prosecution for false statement in verification. — Any person who makes a statement in any verification in any return or other document furnished under this Ordinance which is false and which the person knows or believes to be false, or does not believe to be true, the person shall commit an offence punishable on conviction with a fine upto hundred thousand rupees or imprisonment for a term not exceeding three years, or both.

  • Stock market gains 102 points amid cautions trading

    Stock market gains 102 points amid cautions trading

    KARACHI: The stock market gained 102 points on Thursday amid cautious approach of investors amid negative reports from political front.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,306 points as against 42,204 points showing an increase of 102 points.

    Analysts at Arif Habib Limited said that the market maintained the cautious approach as have been witnessed in the previous sessions, however, in the process discounted the potential negative impact of resignation of Opposition parties from National and Provincial Assemblies as well as the threat of Indian false flag operation.

    Investors focused gaze on fundamentally sound scrips, essentially the main board scrips, such as HBL and NBP which not only highlights dividend prospects but have so far shown healthy profits in the bottom line.

    Cement sector remained range bound, as did O&GMCs and Fertilizer sectors. Investors, in general, have been waiting for a clear positive trigger and have weathered the threats from Political as well as Law and order situation. PIBTL topped the volumes with 50 million shares, followed by UNITY (35.6 million) and KEL (34.1 million).

    Sectors contributing to the performance include Banks (+47 points), Technology (+21 points), Cement (+15 points), Transport (+13 points), Fertilizer (+12 points) and E&P (-20 points).

    Volumes increased from 438.1 million shares to 472.1 million shares (+8 percent DoD). Average traded value also increased by 2 percent to reach US$ 120.1 million as against US$ 118.3 million.

    Stocks that contributed significantly to the volumes include PIBTL, UNITY, KEL, PRL and TRG, which formed 40 percent of total volumes.

    Stocks that contributed positively to the index include FFC (+32 points), TRG (+21 points), HBL (+17 points), BAHL (+15 points) and PIBTL (+13 points). Stocks that contributed negatively include ENGRO (-20 points), MARI (-10 points), POL (-7 points), KTML (-5 points) and UBL (-5 points).

  • Foreign exchange reserves increase by $160 million

    Foreign exchange reserves increase by $160 million

    KARACHI: The liquid foreign exchange reserves of the country have increased by $160 million to $20.402 billion by week ended December 04, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $20.242 billion by week ended November 27, 2020.

    During the week ended December 04, 2020, SBP received $359 million from multilateral/bilateral sources including $307 million from Asian Development Bank (ADB).

    After accounting for external debt repayments, SBP reserves increased by $188 million to $13.298 billion.

    The foreign exchange reserves held by commercial banks however fell by $27 million to $7.104 billion by week ended December 04, 2020 as compared with $7.131 billion a week ago.

    SBP approves Rs82.6 million interest free student loan
  • Rupee gains 19 paisas against dollar

    Rupee gains 19 paisas against dollar

    KARACHI: The Pak Rupee gained 19 paisas against the dollar on Thursday owing to supply of the foreign currency in the market.

    The rupee ended Rs160.29 to the dollar from previous day’s closing of Rs160.48 in the interbank foreign exchange market.

    Currency dealers said that the market witnessed demand for import and corporate payments. However, the supply of the dollar in the shape of export receipts and workers remittances.

    They said that the pace of inflows likely help the local currency to further gain value against the dollar.

    Rupee depreciates by 10 paisas against dollar
  • Sale of Rs25,000 denomination prize bonds stopped

    Sale of Rs25,000 denomination prize bonds stopped

    KARACHI: The government has stopped the sale of prize bonds of Rs25,000 denomination with immediate effect and the same shall not be encashed / redeemed after May 31, 2021, State Bank of Pakistan (SBP) said on Thursday.

    The SBP said that the finance ministry had already issued instructions in this regard a day earlier. The ministry also announced the issuance of registered or premium prize bonds of Rs25,000 denomination.

    The SBP issued following instructions to the president and CEOs of all commercial banks regarding option to replace / encash the bonds:

    1. Conversion to Premium Prize Bonds (Registered)

    i. The Bonds can be converted to Rs. 25,000/-denomination Premium Prize Bonds (Registered) through the 16 field offices of SBP Banking Services Corporation, and branches of six authorized commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited and Bank Alfalah Limited.

    ii. The authorized commercial banks shall also issue Rs. 25,000/-denomination Premium Prize Bonds (Registered)as per the prescribed procedure, with immediate effect. Stock of the same has already been delivered to authorized commercial banks.

    iii. The bondholder shall be required to submit a written request for conversion of bearer bonds to Rs. 25,000/-Premium Prize Bonds (Registered) on the prescribed application form.

    iv. The bondholder shall also be required to submit prescribed application forms for registration / purchase of Premium Prize Bonds as per the procedure in vogue.

    2. Replacement with Special Savings Certificate (SSC) / Defence Savings Certificate (DSC)

    i. The Bonds can be replaced with SSC / DSC through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks and National Savings Centers.

    ii. All authorized commercial banks shall, therefore, accept requests for replacement of bearer bonds with SSC or DSC on the prescribed application form.

    iii. The bondholder shall also be required to submit application form for purchase of SSC / DSC (SC-1) as per the prescribed procedure

    3. Encashment at Face Value

    i. The Bonds will only be encashed by transferring the proceeds to the bond holder`s bank account through the 16 field offices of SBP Banking Services Corporation, at authorized commercial bank branches and to the Savings Accounts at National Savings Centres.

    ii. All commercial banks shall receive requests for encashment of bearer bonds on the prescribed application form.

    A copy of the application form (Annexure A), duly signed and stamped, shall be provided to the bondholder as an acknowledgement receipt.

    Moreover, the prize bonds encashed / replaced by the general public may be surrendered to the concerned SBP BSC office through the respective regional office of the commercial bank.

    For this purpose, the regional office may intimate the SBP BSC office three days in advance so that necessary arrangements for receipt of the bonds can be made.

    It is imperative to mention that a notice regarding the above-mentioned facilities must be displayed at prominent places within branch premises for awareness and information of the general public.

  • National Savings tightens checks on investors

    National Savings tightens checks on investors

    ISLAMABAD: The government has tightened monitoring of investors of national savings to comply with conditions of Financial Action Task Force (FATF) and prevent transactions related to money laundering and terror financing.

    The Central Directorate of National Savings (CDNS) has prepared a comprehensive plan to examine the customers and issued instructions to all its regional offices in the country.

    The plan has been prepared by the National Savings (AML&CFT) Supervisory Board in consultation with the Financial Monitoring Unit (FMU).

    Under the plan the offices of the national savings have been advised to follow the guidelines in examining and monitoring the customs of the saving certificates and prize bonds.

    All those customers will be examined where overall investment quantum, account balance or transactional activity is not in line with their businesses, known means or stated purpose of products.

    The authorities issued red flags for transactional patterns related to all products, including certificates, accounts and prize bonds.

    Following are the red flags to identify suspicious transactions:

    ·         Nominee is not a close relative or change in nominee (for instance, to include non-family members).

    ·         Third party check is provided for investment.

    ·         Purchase of a long-term investment product followed shortly thereafter by a request to liquidate the position to get back the invested amount.

    ·         Overall investment quantum, account balance or transactional activity is not in line with the customer’s business, known means or stated purpose of the product.

    ·         Client is frequently purchasing savings certificates / prize bonds through unusual payments in cash which do not commensurate with his/her profile.

    ·         Unusually high levels of investments or unusually large transactions in relation to what might reasonably be expected of clients with a similar profile.

    ·         When transactions are conducted without any apparent legitimate or economic reason.

    ·         Where multiple deposits are made by unrelated individuals.

    ·         Large cash is deposited followed by early withdrawal.

    ·         Where large deposits and withdrawals are made routinely, and the end of day balance is very low or nil.

    ·         When a customer insists to buy multiple savings certificates/prize bonds through structured/broken cash transactions to avoid CTR reporting threshold (PKR 2.0 Million and above).

    ·         Two or more customers (Linked/associated with each other) working together to break one cash transaction into two or more transactions to evade the CTR reporting requirement.

    ·         Purchase of higher denomination Prize Bonds against cash without providing any plausible justification.

    ·         Encashment of higher denomination Prize Bonds without any plausible justification.

    ·         When a customer is frequently converting one product into another (especially in the name of an unrelated third party) without any plausible justification.

    ·         Numerous prizes are repeatedly/very frequently being claimed by the customer against winning prize bonds during a short span of time.

  • Annual tax return filing by due date falls 29 percent

    Annual tax return filing by due date falls 29 percent

    ISLAMABAD: Filing of annual income tax returns fell by 29 percent for tax year 2020 by due date as compared with number of return filed by due date for tax year 2019.

    The FBR on Wednesday said that it had received around 1.8 million income tax returns for tax year 2020 by the due date i.e. December 08, 2020, which was extended from September 30, 2020. Since the FBR has refused to further extend the date so December 08, 2020 has been taken as the closing date for filing income tax returns for tax year 2020 without fine and penalty.

    The FBR received 2.53 million returns by due date i.e. February 28, 2020, which was extended from September 30, 2019 to October 31, 2019, then November 30, 2019, then December 16, 2019, then December 31, 2019, then January 31, 2020 and final extension granted up to February 28, 2020.

    The number of 2.53 million returns has been shown on the Active Taxpayers List (ATL) for tax year 2019 issued on March 01, 2020.

    Around 2.98 million returns for tax year 2019 have been filed till December 06, 2020 as shown in the updated weekly ATL issued on December 07, 2020.

    The latest number of returns filed for tax year 2020 has shown that it was around 39.6 percent or 1.18 million returns short when compared with latest ATL for tax year 2019.

    On the other hand the FBR on Wednesday said that it had received 1.8 million tax returns for tax year 2020 by the last date i.e. December 08, 2020 as compared with 1.73 million returns received on the same date last year, showing 4 percent growth. However, the FBR said that around 300,000 taxpayers had submitted applications for date extension by the due date. This number will also add to the total number of returns filed for tax year 2020.

    It is worth mentioning that the due date for filing income tax returns for tax year 2019 was extended up to February 28, 2020.

    Further, since the launch of ATL on March 01, 2020 or the due date of February 28, 2020 for tax year 2019 the FBR received another 450,000 returns for the same year up to December 06, 2020.

    The FBR through its press release said that its decision of not extending the date beyond December 08, 2020 was right. The decision for not extending the last date was taken to ensure discipline in return filing by due date.

    However, collection of tax with return has shown significant increase. The FBR said that collection with return increased to Rs22 billion by the due date i.e. December 08, 2020, was 63 percent higher when compared with Rs13.5 billion by the same date of the last fiscal year.

  • Electronic tax appeal filing made mandatory from January 01

    Electronic tax appeal filing made mandatory from January 01

    The Federal Board of Revenue (FBR) has made the filing of tax appeals mandatory through electronic means, effective from January 1, 2021. This shift to electronic filing aims to streamline the process and reduce the administrative burden on taxpayers and tax authorities alike.

    (more…)
  • Stock market gains 102 points

    Stock market gains 102 points

    KARACHI: The stock market gained 102 points on Wednesday as the market discounted all the hype created by the opposition parties yesterday on plans of tendering resignations from the National and Provincial assemblies.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,204 points as against 42,101 points showing an increase of 102 points (+0.2 percent DoD).

    Analysts at Arif Habib Limited said that the market discounted all the hype created by the opposition parties yesterday on plans of tendering resignations from the National and Provincial assemblies.

    Banking sector played vital role in the shape of HBL and UBL taking charge again after a lull of almost 2 months since announcement of 3QFY20 financial results.

    International crude prices went positive as well, trading +1 percent that helped E&P stocks inch up.

    Chemical and O&GMCs also contributed to the positivity and helped the index maintain level above 42,200.

    The Index swayed between +248 points and -72 points, and closed the session +102 points. Among scrips, TRG topped the volumes with 33.7 million shares, followed by LOTCHEM (27.1 million) and UNITY (26.1 million).

    Sectors contributing to the performance include E&P (+44 points), Technology (+20 points), Power (-13 points), Tobacco (-10 points) and Autos (-6 points).

    Volumes increased from 409.7 million shares to 438.1 million shares (+7 percent DoD). Average traded value also increased by 3 percent to reach US$ 118.3 million as against US$ 115.3 million.

    Stocks that contributed significantly to the volumes include TRG, LOTCHEM, UNITY, HASCOL and MLCF, which formed 30 percent of total volumes.

    Stocks that contributed positively to the index include TRG (+30 points), OGDC (+24 points), PPL (+12 points), UBL (+11 points) and HBL (+10 points).

    Stocks that contributed negatively include HUBC (-18 points), PAKT (-9 points), BAHL (-9 points), SYS (-9 points) and MLCF (-8 points).